Not that long ago, the mobile devices market recognized only one king – Nokia. But the emergence of smartphones helped HTC dethrone the Finnish brand. However, the glory of this Taiwanese manufacturer didn’t last long. Now the mobile world leaders are Samsung and Apple. But the Chinese smartphone maker companies are breathing down the neck of these two. Huawei has been in the third position for a couple of years. And in some quarters, it even surpasses the Cupertino-based company. But what about other China-based brands? When asking this question, most of you will think of Xiaomi. Today, the special conference held in Japan, the manufacturer official uncovered that Xiaomi is the world’s fourth smartphone maker.
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| Xiaomi redmi note 7 |
It turns out Xiaomi Smartphone manufacturing has deployed operations in more than 90 countries and regions around the world. But what’s interesting, in 42 countries and regions, Xiaomi has achieved good results, landing in the top five. This simply means, in almost half of the markets, Xiaomi is among the leaders. Thus, the recognition rate of this brand is quite high.
But if Xiaomi’s performance is the smartphone market is expected, many are not aware of the myriads of products this company is launching. Say, Xiaomi has currently deployed more than 2,000 ecosystems and consumer IoT devices. Due to this, it has become one of the world’s largest consumer IoT platforms, with a total of 213.2 million IoT access devices.
Xiaomi is a Chinese electronics company founded in 2010 by Lei Jun. The company creates a wide range of products including hardware, software and Internet services. Xiaomi is already distributing its products in numerous countries such as Singapore, Philippines, India, and Brazil.
Xiaomi grew at a rather quick pace, already in 2012, Xiaomi generated more than 1 billion annual revenue and in 2017 it became the world’s largest IoT (Internet of Things) platform (in terms of the number of connecting devices).
Furthermore, its annual revenue has also been increasing at notable speed:
Despite the company’s meaningful growth in revenue over the past years, the company struggled in smartphones sell during 2015 and 2016: according to Lei Jun, the founder of Xiaomi, organizational problems and issues in the supply chain were at the source of the decrease in smartphones sales. This incident has even forced Xiaomi to retreat from several overseas markets.
This downfall can be noticed through the insignificant increase of revenue in 2016; however, Xiaomi has managed to rebound: revenue boomed by +67.5% in 2017.
Xiaomi’s Triathlon business model
Xiaomi has a particular business model, the company created an ecosystem of internet-connected home and tech products by partnering up with around one hundred start-ups. Xiaomi has often been criticized as an unfocused company that sells everything. But the strategy seems to work.
Xiaomi describes their business model as a triathlon model composed of: Hardware + Internet Services + New Retail
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