Xiaomi is scaling new heights day by day. The company set a new record for quarterly shipments in the second quarter of 2017. According to Xiaomi, it has now sold close to 23.16 million smartphones – an increase of 70 percent from the previous quarter.
How did Xiaomi get here? What are the secrets to its phenomenal success? Let’s dive in and find out.
In the early days Xiaomi showed a lot of promise. The smartphone vendor sold over 61 million phones in China in 2014. These numbers beat popular vendors like Samsung and Apple by quite a margin. It created sales records by selling hundreds of thousands of phones online within minutes.
However, there was a sharp decline in popularity in around 2016 when the brand cold not meet its expected target of selling atleast 100 million phones. They fell short by 30 million units. During the year in the first quarter of 2016, it was kicked out of IDC’s list of the top-five smartphone vendors. The position was occupied by its competitors Huawei, Oppo and Vivo. Oppo and Vivo continue to sell handsomely in India.
However, they kick started this year with an absolute bang. Currently, Xiaomi is the world’s 4th most valuable technology start-up. This, after it received another US $1.1 billion of funding from its investors, valuing Xiaomi at more than US$46 billion.
Record Breaking Sales
Xiaomi’s Redmi Note 4 has now become the highest shipped smartphone in the country. The offline retail stores opened by Xiaomi in Benguluru saw most of its stock getting emptied in the first 4 hours. Massive sales on Amazon, Flipkart and other e-retailing websites have now put Xiaomi as the number one smartphone brand in the country displacing the likes of Micromax and Lava.
Amazon.in and Mi.com sold more than 250,000 units of the Redmi Note 4 within eight minutes of launch on May 22. The Company now expects 25% of its total sales to come from the offline model by the end of the current year, which would rise to half of the total sales within the next two to three years.
The company has two manufacturing facilities currently operating at Sri City Special Economic Zone, near Chennai. Here, “a phone is produced every second.”
According to latest IDC reports, the share of China-based vendors has gone up to 46 percent in Q4 2016. Meanwhile, the share of homegrown vendors stands at merely 19 percent in the same period.
How They Do It
Lei Jun, Xiaomi CEO, said that the company prices the phone almost at bill-of-material prices, without compromising the component quality and performance compared to other premium smartphones.
This strategy in turn helps Xiaomi build a large and valuable customer base who appreciate their products. It also profits by selling phone-related peripheral devices, smart home products, apps, online videos and themes.
The Mi Band was announced in August 2014. The Mi Band are sold for US$13, has a reported 30-day battery life, can act as an alarm clock and tracks your fitness and sleep. The band also has the ability to unlock your phone based on proximity. This has also been a trademark product for Xiaomi which has enabled them to carve a name inside the technology world so efficiently.
Xiaomi may now launch a third global brand to sell more of its phone, having already launched Redmi & Mi.
Quite obviously, the brand seems to be one you can trust when considering a new smartphone. When you do that however, remember to sell your current device on Cashify to sweeten your deal!