In an interview Manu Jain says that besides higher revenue, the focus will be to improve on its performance, while expanding its reach in offiline, adding capacity to local manufacturing and investing in new statrt-ups while expanding the Mi ecosystem with new products. Xiaomi has achieved the $1 billion revenue mark in 2016, within the shortest possible time, but India head Manu Jain has already set targets for 2017.
For the first time we are disclosing our Xiaomi India revenue numbers, even in China we disclose our volume numbers only. No company has been able to achieve such numbers ever and we just don’t mean a mobile handset company, we mean no company, whether you look at big business houses, or FMCG companies, electronic manufacturing companies, IT companies, social media giants — no company has achieved such numbers in the history of India in its operations of just two years.
We have seen a 150% growth from 2015 to 2016 from the volume shipment perspective. The revenue that we have clocked in the calendar year 2016 is more than $ 1 billion, in our second year of operations, approximately more than Rs 7000 crore. So if you look at the typical volume shipment that we see in 2015 vs 2016, we have seen a 150% growth. July-September was the first time we announced that we had sold more than 2 million phones. The actual amount was 2.5 million, which includes online and offline. Q3 of 2015 was the first time when we had crossed 1 million. From 1 million to 2 million is a 150% growth. Similar trends have occurred across all quarters. We started Xiaomi in 2014 second half and 2016 was the second full year of operations for us.
Smartphones are growing rapidly. Smartphone is where the future is because if you look 3-4 years back, the total phone market was 250 million. Today, the number of smartphones will be some 110-120 million from about 40-45 million a few years back. The overall number of phones has been almost stagnant. People are migrating from feature phones to smartphones.
We were No 3 in Q3 in India from overall smartphone shipments perspective and the difference between us and Micromax was very, very small — 0.1% as per IDC numbers. But if you look at the online market, we have a significant leverage over anybody else. One of four phones sold online is a Xiaomi.
If you combine Lenovo and Motorola — which have a 12% market share each — both of them are half of us individually but slightly ahead combined. We are at about 23% market share.
Smartphone market in India is considered the second largest market by volume in the world. With small steps, sure Xiaomi has managed to establish itself in this market. This outcome worries some leaders of the smartphone market in Europe and US. Xiaomi has confirmed that highly trained market strategists. Market strategists who analyze the smallest details and provides the best solutions.
I recommend you read the full interview.