Smartphone revenues raked in 30.5 billion yuan in revenue for the second quarter, a 58.7 percent year-on-year rise, despite the overall handset market declining. Xiaomi said of which the average selling cost of devices rose too. In its earning statement, the technology firm said of which the Chinese smartphone market will be in a “period of recalibration” however its focus will be on expanding into the high-end segment.
Xiaomi has grown by creating mid-to-low-priced devices with high specs. however the idea needs to expand into higher priced devices in order to boost revenues.
“We believe our strategic focus to further penetrate the high-end smartphone market by optimizing our product portfolio in 2018 will lay the groundwork for further shipment unit growth in China in 2019,” Xiaomi said in a Discharge.
Analysts are concerned of which Xiaomi could struggle to diversify its business away coming from hardware, which will be a low margin business. Smartphones account for around 70 percent of Xiaomi’s revenues, while some other products such as TVs are another 20 percent. Under 10 percent of revenues come coming from its internet services business which include its music streaming product.