Xiaomi, Build Largest Consumer IoT Platform, Make Quality Technology for Everyone

Xiaomi was founded in April 2010 by Lei Jun and several other partners. At the beginning, Lei Jun was a fan of Steve Jobs, and aim to make Xiaomi a great global company like Apple. So when you learn Xiaomi history and products, you can see the similiarities between Xiaomi and Apple, such as the store, the products show event, ecosystem, etc. Inevitatibly, Huawei is one of the major competitors that Xiaomi faced domestically and abroad.

Xiaomi grew very fast from the start, and was listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018. With the vision of being friends with its users and being the “coolest company” in the hearts of its users,
Xiaomi is committed to continuous innovation, with an unwavering focus on quality and efficiency.
The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology. From the website of Xiaomi, we can see the main products are Mi Phones, POCOPhone, Redmi Phones, Mi TV, and smart devices.

From Xiaomi Website Front Page

From Xiaomi 2019 interim report, the strategy is implementation of our “Smartphone + AIoT” dual-engine strategy and AIoT platform continued to maintain its leading position. So Basically, Xiaomi offers three product sections: Smartphone, IoT products, and Internet services. 

From Xiaomi 2019 interim report

SmartPhone: 

As from the 2019 interim report: Our smartphone segment recorded RMB32.0 billion in revenue in the second quarter of 2019, representing an increase of 5.0% over the corresponding period of 2018. Our smartphone sales volume in the second quarter of 2019 reached 32.1 million units. According to Canalys, we ranked 4th globally in terms of smartphone shipments during the second quarter of 2019 and our market share in terms of global smartphone shipments increased from 9.5% in the second quarter of 2018 to 9.7% in the second quarter of 2019.

The reason Why Xiaomi achieved great success is that  Mi phone and Redmi phone are positioned to pursue the ultimate price-performance ratio and focus on online channels, and have performed well.

IoT and lifestyle products:

Smart devices is another pillar of Xiaomi business, and takes more important role in the future, because Xiaomi want to build the largest consumer IoT platform in the world. Everyone can enjoy Xiaomi products at home, such as TV, air condition, security camera, even LED Bulb. 

From the website of Xiaomi

We all know that data is oil in the data era, Xiaomi collects more and more user data, and make it as a formidable moat. 

As from the 2019 interim report: As of June 30, 2019, the number of connected IoT devices (excluding smartphones and laptops) on our IoT platform reached approximately 196 million units, representing a year-over-year increase of 69.5%. The number of users who have five or more devices connected to Xiaomi’s IoT platform (excluding smartphones and laptops) increased to approximate 3 million, representing a year-over-year increase of 78.7%. In the six months ended June 30, 2019, the shipments of our AI speakers exceeded 4 million units. In June 2019, our AI assistant “小愛同學” had 49.9 million MAU, making it one of the most used AI voice interactive platforms in China. 

Internet Services:

Xiaomi continued to open up AIoT platform to build a more vibrant AIoT ecosystem. Mi Home app had 30.4 million MAU in the second quarter of 2019 and more than half of the MAU in mainland China were from nonXiaomi smartphone users. Xiaomi invest in the development of open AIoT platform to attract more third parties and users to join this AIoT platform.

From Xiaomi Q3 2019 Results Announcement

Xiaomi focus on enriching our internet services and content to strengthen our advertising business. Many of internet services are leading on Xiaomi smartphones, Mi App Store, Mi Browser, Mi Security, and Mi Music ranked 1st and Mi Video ranked 2nd in their respective categories in mainland China in terms of MAU on Xiaomi smartphones in June 2019.

From Xiaomi Q3 2019 Results Announcement

Oversea Market:

In mainland China, there is fierce competetion in the phone industries with lots of vendors, such as Apple, Huawei, Samsung, Oppo, Vivo, Lenovo, Xiaomi, etc. Xiaomi take oversea market as a new growth engine, and make India and west Europe as the two major target market.

From Xiaomi Q3 2019 Results Announcement

As Apple store is very success, more and more consumer brand build shop store as the main selling channel. As of June 30, 2019, there were a total of 520 Mi Home stores overseas, representing a 92.6% year-over-year growth, of which 79 stores were located in India. 

The mission of Xiaomi is to relentlessly build amazing products with honest price to let everyone in the world enjoy a better life through innovative technology.  Xiaomi will further enhance the development of AIoT technology, by building a comprehensive AIoT ecosystem, strengthening our research and development, and realizing synergies across business units to improve smart devices’ connectivity and user experiences, and open AIoT platform to attract more third parties and users to join this AIoT platform.

 



 
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