Xiaomi Claimed To Be An ‘Internet Company’—But It’s Making More Gadgets Than Ever

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After selling itself as an 'internet company' in 2018, Xiaomi still makes less than 10% from internet services. Instead, it has been focusing on even more hardware products: air purifiers, hair dryers, vacuum cleaners and a myriad other gadgets.

. That has since slid down to its current level of $12.5 billion. His four colleagues experienced similar declines in their net worths.revenue breakdownInternet services contributed 9.6% of its total revenue in 2019. IoT and lifestyle products business, which includes smart home devices and wearables, made up 30.2%, while its core smartphone business was credited with 59.3%.

It also helped that Indian consumers were already familiar with the Xiaomi brand. The Chinese company is the top smartphone maker in the country,, beating out the likes of Samsung, Vivo and Oppo. Xiaomi is betting it can replicate its India success in other price-sensitive markets like Southeast Asia and Latin America, and leverage its popular brand—built on the back of its smartphones—to sell other gadgets.

The gross profit margin for its smartphones and other gadgets in 2019 were only 7.2% and 11.2%, respectively. Meanwhile, internet services command a profit margin of 64.7%.

 

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