China’s Xiaomi misses 2015 smartphone shipment target as competition at home bites
But company infamous as an ‘Apple clone’ still ranks as year’s No 1 smartphone maker in China by market share
Smartphone maker Xiaomi said on Friday it had shipped more than 70 million handsets in 2015, undershooting its own target and casting doubts about the growth prospects of China’s most valuable tech start-up in a cut-throat market.
The figure was announced in a photo featuring Xiaomi president Lin Bin which was posted on the company’s microblog with the banner: “2015 Xiaomi cellphone shipments: Over 70 million!”
Xiaomi had estimated total annual sales of 80 million to 100 million, but in July it reported semi-annual sales that for the first time were lower than the previous six months, with analysts saying its main domestic market was rapidly becoming saturated.
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A spokeswoman for the company once pipped as Apple’s biggest rival in China declined to say why sales had missed the target, adding that the 70 million figure “puts us as the top smartphone manufacturer in China in terms of market share for the year of 2015”.
Xiaomi, however, is facing stiff competition from more established firms such as Lenovo Group and Huawei Technologies at home and its plans to expand abroad in emerging markets such as India and Brazil have hit intellectual property hurdles.
Executives have also acknowledged that the five-year-old start-up’s thin portfolio is a major weakness, and the company has avoided entering markets with strong IP law enforcement. The company has put its market value at US$45 billion.