Xiaomi Profits Jump by 70% in Last Quarter

Xiaomi is on its way to another record-breaking quarter, getting steadier on its quest towards becoming one of the world’s largest smartphone companies.

According to its Q2 report, the company managed to sell 23.16 million smartphones worldwide. While the figure may not be the largest, it is up by 70-percent compared to the same time last year, where it slowed down quite significantly due to much-needed “adjustments” in production, leading experts to criticize the company and its aspirations of sustainable growth.

Profits From India

The figure comes not only as a result of an increased focus towards developing markets such as India (where the profits grew by a gargantuan 328% compared to last year), but also due to ironing out production inefficiencies, and an improved sales network, as told by the company’s CEO Lei Jun in its recent press release.

For the next year, Xiaomi is hoping to target a shipment of around a hundred million smartphones throughout the year. It’s unlikely that the company will alter its cost-effective, penetration-based market entry strategy in the future.

New Hires and Improvements

That’ll be aided via the recruitment of around 1000 more research and development talent. The year also saw the company move more of its production in-house, with the launch of the first ever Surge chipsets used in its smartphones. It was also granted around 3,000 new patents this year.

Xiaomi also improved its physical presence, with the opening of hundreds of stores, mainly in developing markets (it plans to take the total number of retail outlets it has around the world to about 2000 in the next three years).

Those have also been aided by the launch of online stores in countries where the company’s presence has been small. It has also seen impressive growth in sales in countries like Indonesia, Russia and Ukraine, coupled with its meteoric rise in India.