Xiaomi surpassed Huawei to become the third largest phone maker this year in February due to the upset caused by the COVID-19 outbreak. The upset hit Huawei hard, which resulted in the tech giant selling 70% fewer phones in February, whereas Xiaomi only suffered a loss of 30%.
However, industry experts predict that Xiaomi might face further difficulties in the wake of the epidemic, and due to the intense competition from competitors like Oppo and Vivo.
In 2019, Xiaomi’s revenue grew by 17.7% and its net profit surged 35% thanks to an increased number of shipments for handsets and a plethora of other devices. The Chinese company sold 12.8 million TV sets last year and its IoT business contributed to a significant amount of its total revenue. It sold over 100 million handsets and 230 million IoT devices in the year.
However, industry experts believe that Xiaomi needs to work harder to keep up and maintain its momentum in 2020, especially since its total revenue is only one-sixth of Huawei, which is the company’s biggest rival locally and internationally.
Other rivals such as Oppo and Vivo are also venturing into the IoT business and are expanding their 5G devices by the day. Additionally, the ongoing COVID-19 pandemic is only going to make things harder for Xiaomi (and all other OEMs) as the situation unfolds.