Xiaomi Chief Foresees More Than 50% Increase In Company’s Revenue This Year
Xiaomi Corp. has been exceptionally successful, over the years, in procuring smartphone consumers’ attention in emerging markets. Its business model — which revolves around the motive to offer better specs in lower prices — has worked remarkably well. The way it has given Samsung a run for its money in Chinese smartphone market, is great achievement for the corporation. This success is substantiated by huge revenue it has generated. And the same success is reflected from Xiaomi CEO’s expectations as he foresees his company earning more than $16 billion in 2015.
Currently recognized as China’s biggest smartphone vendor, Xiaomi, is eyeing a huge boost in its revenue on the grounds of diversification of its products and increasing its exports.
According to the Bidness Etc, the smartphone vendor has planned to make sales of more than $16 billion (100 billion yuan) in this year. Achieving this target means an increase of more than 50% compared to last year’s $11.85 billion (74.3 billionyuan). Chief Executive Xiaomi Lei Jun echoed this sentiment while talking about the company’s sales projections on Thursday at the National Congress in Beijing.
Mr Jun seems pretty sure of his success in the goal of increasing revenue, as he said: “There’s no doubt sales will surpass 100 billion yuan this year, and growth will be more than 50 percent.”
Keeping in view the company’s track record in earnings, the optimism of the CEO is comprehensible. To illustrate, the company’s valuation has reached to $45 billion in its very small age as a business: just four years ago the company introduced its first smartphone. In addition to its sole productions, the company has expanded its business by investing in twenty other startups in last two years.
Mr CEO is confident to make his company the world’s largest smartphone business within the next decade or so. He has perceived that more shipping and market share is the sure way to reach the destiny of becoming stupendous smartphone vendor.
The company secured an impressive market share in the Chinese smartphone market in 2014. According to IDC, an increment of 720 basis points escalated its market share to 12.5% from 5.3% achieved in 2013.
Some of the recent plans company has in line include the launch of a website in the US which will be used by Xiaomi to sell its products including chargers, health bands and headphones. Meanwhile, the company is set to target may new markets to sell its smartphones.
Abubaker Zahoor writes on diverse topics with special interest in innovations, tech-ethics, and inter-and intra- organizational business relationships.