Xiaomi. The Chinese company has experienced a surprisingly good evolution in recent months, and at the end of 2018 it managed to double its phone sales outside of China, which is not easy to achieve. Moreover, Xiaomi copied from Apple the strategy of also selling services for the products it has, and this helped it to grow, and to obtain profit for the fourth fiscal quarter of 2018, a impressive achievement for the company.
Xiaomi. Although the receipts were slightly below expectations, the profit of the Chinese company was 3 times higher than that recorded during the last year, reaching 276 million dollars, a noticeable difference. Xiaomi recorded constant and very fast growth in India, but also in Eastern Europe, sales outside China reaching 40% of the company's total receipts, a noticeable increase from the 28% they represented in Q4 2017 for the company.
Xiaomi has Unexpectedly HUGE Success Copying Apple
Xiaomi. Following the strategy of those from Apple in recent months, the Chinese want to focus even more on increasing revenue from services, saying that they will not want to have a profit greater than 5% from the sale of phones. The receipts for the online services sold by Xiaomi increased by 61% for Q4 2018, and it is expected that this rate of growth will continue including in the following fiscal quarters, to counterbalance the decrease in smartphone sales.
Xiaomi singled out overseas markets in its latest earnings report as the segment grew 118.1 percent to make up 40 percent of its total revenue in the fourth quarter, compared with just 28 percent for the year-earlier period. Xiaomi has repeatedly billed itself as an "internet" firm, although so far smartphones are still its main economic driver, accounting for 65.1 percent of overall revenue in Q4. Despite a sluggish year for smartphone brands around the world, Xiaomi handsets grew nearly 30 percent to 118.7 million units in sales last year.
Xiaomi. The Chinese are also starting to present themselves as a company specializing in the sale of services through the Internet, placing less emphasis on the physical products that they sell globally. Just like Apple, Xiaomi wants to reduce its dependence on smartphone sales, and to generate money through new methods, but it remains to be seen to what extent it will be able to modify its strategy in order to have the achievements expected from Apple.
