Description of Xiaomi Look At A New Market After A Testimony Economic Year 2020
Xiaomi managed to pull out of the game during a year 2020 strongly shaken by the Covid-19. The Chinese giant is now eyeing a new market to ensure a bright future.
If the Chinese technological giants are not at the party, one of them is an exception. This is the manufacturer Xiaomi, which had a very good 2020 financial year and even managed the feat of getting out of the "blacklist" drawn up by Washington, in which there are some big names in the industry. The Middle Kingdom, like Huawei or ZTE.
At the end of the past year, Xiaomi is now the third-largest seller of smartphones in the world behind Samsung and Huawei after having dethroned Apple. Performance all the more notable as global sales of smartphones fell 5.7% last year, according to figures delivered in the third quarter of the past fiscal year by Gartner. Race results: Xiaomi finally recorded a 19.4% increase in revenue in 2020, as well as a net profit of around 1.7 billion euros in the last fiscal year.
The manufacturer's smartphone branch recorded a turnover of 19.7 billion euros last year thanks to sales volumes of around 146.4 million units marketed in 2020. Another fact of weapon, the Chinese manufacturer recently indicated that 49.8% of its revenues were made outside its Chinese stronghold. Regarding its internet user base, Xiaomi said that the number of monthly active users of its home distribution of Android, MIUI, has increased by 28% and now has 396 million users. Of that total, more than a quarter resided in mainland China.
Eyes full of stars
All the lights, therefore, seem to have turned green for the Chinese giant. But things could have been very different if the Asian firm had not been able to get rid of the White House in time. While the American authorities had placed the Chinese manufacturer in early January on its "blacklist" of companies posing a risk to the security of the United States alongside Huawei or ZTE, Washington finally had to do an about-face following a decision by American justice.
Washington had sought to place Xiaomi on its list of companies declared persona non grata on American soil in early 2020 after accusing the company of "posing as a civilian entity" in order to procure advanced technologies to support modernization goals. of the Chinese army. The American justice however ruled that this decision would cause "irreparable damage" to the Chinese manufacturer, calling on the American authorities to remove Xiaomi from its list.
What to grow wings for the management of Xiaomi, which now intends to develop in all directions. And no longer just in the segment of smartphones or connected objects. While the margins recorded on the smartphone market are still low, it is on the electric vehicle market that the Chinese manufacturer could quickly place its pawns. If Xiaomi is already active in the field of mobility via its range of scooters, the conquest of such a market of the future would be a symbol for the Chinese firm. A company that the competition will inevitably have to contend within the coming years.