Xiaomi dropped in rankings from the number 1 Chinese smartphone manufacturer in 2015 to number 4 last year. Some people believe that this is because they were creating products that were out of their league. Other speculation of why this happened includes the idea that while the company creates and distributes a good product, customers are unable to get their hands on them because the stores run out of stock so quickly.
This very thing happened with the Redmi Note 4X, launched in 2017, as well. Right after its release, it was completely sold out. For this reason, some people believe that the company will not last for much longer. However, not all hope has been lost after seeing the sales numbers of quarter one of this year. Kevin Wang, a Chinese tech influencer, concluded that if the company sold at least 70 million phones, it would be possible to triumph this dilemma.
This goal was surpassed, and now the company is looking at selling 90 million smartphones.
According to the International Data Corporation, the Xiaomi shipments in Q2 of this year reached 21.2 million. Also according to this data, the company received 6.2% of market share from these shippings. When comparing this data to the IDC data from 2016, there was a 58.9% growth over the past year. In quarter 2 of 2016 the company shipped 13.3 million units and received a market share of only 3.9%. With the announcement of the release of the Mi 5X, Xiaomi states that their shipments shot up to 70% more than Q1. This set a record for the company, and they also became the first company to rise so significantly after a decline.
Looking at the data and calculations, the company has sold 60 million units in the past three quarters. This is taking into account the Q3 information released by Kevin Wang that states that the unit shipment units were 27 million. That being said, the way the company is headed, their goal of reaching 90 million shipment units and becoming the 5th smartphone manufacturer in the world is quite attainable. As long as numbers and shipments continue to rise, the company is looking at success.
Just a few months ago, the 100th Mi store was opened in China. Now there are over 140 stores. The company continues to grow and expand. They are also partnering with online platforms to gain visibility and boost awareness of their products. They are expanding rapidly and are reversing their digression that they experienced last year.
Another tactic they plan on using is communicating with global suppliers in hopes of resolving the issue of product supply. By expanding their suppliers, they will be able to ship all over the world. This can help expand Xiaomi’s market, which, in turn, will help raise their shipment units. Basically, at the rate they are going, it is looking definite that they will achieve the title of 5th top smartphone manufacturer in the world.
The company had set a goal early this year of reaching $14.7 billion (100 billion yuan) for the year 2017. They also set a goal of 100 million shipments for 2018. At the rate they are going, these goals seem quite attainable, and even likely to be met. Xiaomi is a quickly-expanding company and a force to be reckoned with. They will not allow a small setback to keep them down. As they have shown, they are durable and can bounce back easily.