While many businesses faced a tough time in the year of the pandemic, Xiaomi, Chinese multinational electronics company, has reported “stellar results” for the “exceptional” year, an open letter from Lei Jun, company’s chairman, states. The company, besides focusing on smartphones will keenly explore smart home solutions facilitated by its AIoT (artificial intelligence of things) platform centered around smartphones.
The company revenue and adjusted net profit grew 19.4 percent and 12.8 percent respectively, year-over-year in 2020. Also, the company has strategically maintained a net profit margin for the hardware business under 5 percent. The company, it’s claimed maintained a net margin under 1 percent in 2020 for its hardware business. Xiaomi products now reach over 100 countries and regions, globally, and last year, half of the company’s revenue was generated in the overseas market.
During the next decade, Xiaomi will be focusing on its formulated strategy, “Smartphone x AIoT”, established last year. “Under the guidance of this strategy, smartphones will remain as the cornerstone of our business while our AIoT platform will center (centre) around smartphones to build up a smart living ecosystem and enlarge our user base,” the letter states. The company hopes to harness more opportunities and grow stronger with this strategy.
The company, during the last three years, strengthened in imaging, wired/wireless charging, AI and IoT platforms, as a result of having made a strong investment in tech-research and development. “In 2020, our research and development expenses were approximately RMB (Ren Min Bi, official Chinese currency) 10 billion and are expected to increase by more than 30% to over RMB13 billion this year. We will further expand our research and development team with over 5,000 engineers to be recruited this year,” the chairman mentioned.
“In 2021, we will continue to implement our core strategy of “Smartphone × AIoT” focusing on the smartphone market to seek greater breakthroughs while systematically developing “smart home” solutions and provide users with a more complete, convenient and thoughtful living experience,” he added.
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Photo courtesy: Xiaomi