Xiaomi's smartphone sales drop, but they aren't worried

This year's Q3 sales in China, which is their primary market, have dropped by 45%

1 minute & 18 seconds read time

Xiaomi blew everyone's mind last month when they announced their Mi MIX phone, which whether you like it or not, brought some innovation and courage (not the "let's remove the headphone jack" courage) to the market.

Xiaomi's smartphone sales drop, but they aren't worried | TweakTown.com

However, the company, according to the recent report from the research firm IDC, is struggling with smartphone sales. Last year, they missed their global smartphone target by 12%, and this year's Q3 sales in China, which is their primary market, have dropped by 45%.

We asked Anshel Sag, Associate Analyst at Moor Insights & Strategy, what caused the drop in Xiaomi's smartphone sales.

Xiaomi has been facing stiff competition in China from makers like Huawei, LeEco, Oppo and Vivo. They have recently expanded into markets like India, but they need to be present in the European and North American markets if they want to protect themselves from the cutthroat nature of the Chinese smartphone market. They need to diversify, and fast. That's why you're seeing Xiaomi express interest in the American market, it's just taken them too long. Phones like the Mi MIX would absolutely raise the company's profile globally if they could launch it in the US.

Although their smartphone sales dropped, Xiaomi doesn't seem to worry. Hugo Barra, Xiaomi's global vice-president, told Reuters that their "business model was not based on money made from handset sales per se." He went on to explain that their goal is to secure revenue streams over many years.

Xiaomi also manufactures a range of home appliances that positively effect their earnings.

However, if they want to stay competitive in the smartphone market, they will have to start exploring new markets. Hugo Barra announced they will make their debut at CES in Las Vegas in January, where they will launch a new product.

NEWS SOURCE:reuters.com

Lana has a passion for technology and science. She spends her time looking for the latest and most interesting technology and science news. Her passion is in gadgets, wearables, and other cool and interesting applications of technology or science. She also spends her free time gaming in MMOs like World of Warcraft. She has prior experience covering technology for publications and breaking news. If she’s not doing either, you might just find her exploring the metaverse in VR. Lana wants to expand TweakTown’s coverage of mobile, wearables and gadgets while also bringing her experience with science and general tech to TweakTown. Her area of coverage is around science, technology, smartphones, wearables, and general neat gadgets. She hopes to one day be able to drive around in her self-driving car while she schedules an appointment for a SpaceX trip to the moon on her smartwatch.

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