October 11, 2014 by ...
Xiaomi has been growing. Lei Jun, a communist party member, and kay part of part of the Chinese government is Xiaomi’s founder. He has set aggressive growth targets and claims that 100 million handhelds will be sold next year.
Here is an excerpt of a discussion with Xiaomi’s President Li Bin
Q: How are Xiaomi’s smartphones selling?
A: We announced in early July sales of 26.11 million smartphones and revenue of 33 billion yuan ($5.37 billion) in the January-June half. We will probably sell at least 60 million units in 2014 at this pace. The way it appears now, I think we can achieve that number relatively easily.
Xiaomi President Lin Bin expects the strong sales of his company’s popular smartphones to continue.
Q: Samsung Electronics and Apple have released new products since September. Are you seeing an impact on your sales?
A: We see no fundamental impact. Our sales are still growing strongly. Our monthly shipments have been hitting the 6 million mark lately. In the October-December period, the number will probably reach more than 6 million units, because demand increases every year during that period. As long as economic conditions remain stable during the three-month period, we see no problem meeting our goal.
Q: Is there a chance your sales this year will reach 70 million units?
A: It is a target we strive toward realizing, but we may not reach it.
Q: What are your projections for 2015?
A: We had shortages in many of our smartphones before, but now most of our products are available all the time. Demand is really strong, so our sales may jump 50-100% from this year’s figure.
Q: Xiaomi markets heavily on the Internet. What is the thinking behind this approach?
A: Marketing methods that have been used by traditional industries are a thing of the past in the Internet age. Even if you spend tens of millions of yuan on television advertising, you cannot know how many customers bought your products because of the advertising.