Xiaomi’s Q1 Earnings May Not be as Good as You Think
Lately, Xiaomi has been in the news for all the good reasons. They’re constantly announcing high-speced affordable smartphones and earnings that are constantly on a rise. But seems like the good days of the company may be over played. The Chinese equipment manufacturer that took over Apple’s sales on its home ground a while back, is now witnessing a steep decline in its revenue.
Ben Bajarin from the market research firm Creative Strategies revealed the quarterly sales of Xiaomi. The figure shown below depicts a decline in the Q1 2015 from the last quarter of 2014.
Based on Xiaomi’s end of March statement they sold 100m smartphones in total, they did not have a good Q1 2015. pic.twitter.com/Bn9qwyKukW
— Ben Bajarin (@BenBajarin) April 28, 2015
According to the statement by Ben Bajarin, Xiaomi sold a total of 100 million handsets, which is less than its previous records. One of the major reasons for lesser business for the Chinese tech giant is the supply shortage. The flash sale model adopted by the company has worked both in its favour and against. When the company’s supply does not meet the demand, interested buyers begin looking for other options.
There is a possibility that the latest Mi phone may help recover the revenue. The new Xiaomi Mi 4i consists of the Mi 4 parts, which are easily available in the market. Their supply chain is expected to achieve an overall boost by this, consequently helping Xiaomi build its sales numbers. Let’s hope Xiaomi pays heed to these figures, and increases its units in the future.