Despite share price struggles, Xiaomi has revealed that it is on track for a record sales year which will see it easily surpass its goal of selling 100 million smartphones in 2018.
Wang Xiang, the executive in charge of the Chinese firm’s international business, said on Twitter that he expects to hit its 2018 100 million sales target by the end of October. That would beat last year’s 90 million sales and give Xiaomi a further two months to raise the figure higher still. Given that phone sales are declining worldwide with many in the industry struggling, that’s no mean feat.
Wang didn’t provide further details on sales, but we already know that most of the company’s business happens in the Chinese market. Xiaomi’s most recent earnings report (its first as a public company) revealed that just 36 percent of its revenue comes from outside of its home market although that figure is steadily increasing. According to its IPO prospectus, China represented 72 percent of Xiaomi’s revenue in 2017 which is up from 87 percent and 94 percent in 2016 and 2015, respectively.
Building on that progress, Xiaomi is putting a major focus on expanding overseas post IPO — it said it would set aside 30 percent of the $4.7 billion that it raised from its Hong Kong listing for international growth.
To date, India has been its most successful market — it is consistently ranked as the top/near top vendor — but the Chinese phone maker has a presence across Southeast Asia and it has ventured into global markets that include the Middle East, Central and South America and — most recently — Europe.
Despite hitting its lofty sales target ahead of time, Xiaomi has struggled to win over investors.
Its IPO valuation of $54 billion was well below its reported target of $100 billion, and the company’s shares have traded below their initial price for the past month. Xiaomi is set to report earnings next month so we should get more detail on its 100 million sales and overall progress then.
Xiaomi’s shares have traded below IPO price since September 21
Xiaomi previously had a well-documented struggle when it missed its sales goal of 100 million devices in 2015. One hallmark of the company’s rapid rise earlier in the decade was the crazy growth numbers it regularly boasted about but, after CEO Lei Jun admitted it had grown too fast, it stopped speaking so publicly about its targets.
As a public company, there is, of course, nowhere to hide in terms of numbers. But Wang’s decision to speak publicly shows that Xiaomi has got its swagger back, even if the market isn’t feeling the same way.