Xiaomi is unfazed by the recent poor performance of its smartphone division, company global vice-president Hugo Barra claims. In his words, Xiaomi is relying on the money it makes from connected smart home devices and its software eco-system.
“We could sell 10 billion smartphones and we wouldn’t make a single dime in profits,” Barra told Reuters in an interview. “Basically we’re giving [handsets] to you without making any money… we care about the recurring revenue streams over many years.”
Despite declining smartphone sales in 2016, back in April Xiaomi vice-president Liu De projected sales of smart home devices to increase twofold this year (to around $1.5 billion).
Despite the downward trend in smartphone sales, Xiaomi is still investing heavily in the Asian mobile market and is finally gearing up to make its Western debut next month with a device capable of working on U.S. 4G networks. Furthermore, the company is preparing to show off a “global” mobile device at CES 2017, which serves as evidence that Xiaomi is nowhere close to giving up on the mobile game.