Xiaomi Isn’t Making Any Money?
Xiaomi, the heavily growing and popular Chinese smartphone brand has become the world's 5th largest manufacturer, but apparently, they're not making much money. But their business model is not all about the money, Hugo Barra, Global VP of Xiaomi stated,
"Xiaomi could sell 10 billion smartphones and wouldn’t make a single time in profits, without making any money.”
His reasoning is that they're focus is more on recurring revenue streams in the long run instead of immediate profits.
Xiaomi is expanding its focus into other aspects such as smart home devices and software, like their increasingly popular MIUI operating system on their devices and smartphones. Xiaomi has had pretty strong smartphone sales, which has dropped by 12 percent last year, which reflects Barra's sentiments.
Xiaomi is taking a unique business approach, Xiaomi is looking for success in its other device categories and overall OS user base that will help prolong the legacy of the Chinese smartphone manufacturer.