Xiaomi Sales Drop Spin



The linked article’s key paragraph is this [Google Translate]:

In this regard, the micro-Bo Wang Yang and Sun Changxu two industry experts point out that this is because the touch screen manufacturers in Taiwan’s Wintek bankruptcy, forcing the millet had to turn to other panel suppliers, which greatly affected the millet phone 4 The fourth-quarter 2014 shipments.

In other words, because panel supplier Wintek — which was supplying Xiaomi with screens — went bankrupt, Xiaomi had to scramble to find another supplier and that constrained their ability to manufacture and sell the Mi 4 phone.

It’s plausible. The Mi 4 was their new flagship and initial supplies were constrained.

A sales drop was first noted on Twitter:

And Zero Geeks, in an article analyzing Xiaomi (with some hostility), states [Google Translate]:

Behind such ambivalence is deteriorating smartphones pattern. If we compare the change in sales of millet phone, you can see the millet in 2014 revenue growth has slowed. Tax income in 2013 compared to the previous year millet increased by 150%, while in 2014 the growth rate is reduced to 135% year on year. Growth in mobile phone sales, while sales fell, because millet began to focus on the low-end phones. On the day, the price of 699 yuan of red rice 2 phone release in the mail with the LEI release, confirmed this point. Millet and core technology chip joint venture company that will bet on LCI 1860 this price killer, even more so in 2015 LEI attempt abundantly clear that the 300,400 thousand dollars and even ultra-low-end phones march .

Environment is cruel, According to IDC, in 2015 year on year growth rate of China’s smart phone market dropped to single digits for the first time, only about 7.8%, the figure was 19.9 percent last year. This means that China’s smart phone and began regular cake, limited room for growth. However, in this fixed cake, competition is getting cramped. LEI for the first time in the mail with a “bloody battle in the end” of the word, very bloody, you can also see the cruelty of competition. Huawei, ZTE, Cool, Lenovo, and other domestic mobile phone manufacturers Meizu make up their own Internet short board, it begins with millet way to launch attacks millet, millet greatly eroded profit margins, lower profits in the ultra-low-end mobile phones even more brutally.

They claim Xiaomi focusing on lower-priced phones combined with overall lowered phone growth in China are the twin causes of revenue decline.

Inside those revenue figures are the “missing” claimed four million phones that were never sold.

Of course, Lei Jun didn’t provide a breakdown of sales per phone — because that would be telling.

Previously here:

Xiaomi Stuff Compiled
First Word In On Xiaomi 2014 Sales
John Gruber Versus Xiaomi Ha Ha Ha
Xiaomi 2015
Long Article Explaining Xiaomi

1 Comment

Filed under Marketing

One response to “Xiaomi Sales Drop Spin

  1. E.T.

    There are now several alternatives to the successful redmi line from zte and Meizu. Meizu’s m1 note looks like a particularly attractive alternative to the redmi note with better specs. Together with a smaller version they could seriously reduce the redmi line sales.

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