Xiaomi has advanced to 338th position on the Fortune Global 500 list for the third consecutive year. The giant phone maker has made a leap of 84 places against its previous ranking of 422nd in 2020. The current ranking distinguishes the Chinese company as the fastest-growing company in the Internet and Retail Category.
“Compared to our past achievements, I’m more focused on our potential growth. Xiaomi is still a very young yet ambitious company, full of motivation. I’d like to sincerely thank our Xiaomi Fans around the world as your unwavering support has helped make Xiaomi so lively and energetic. I think that this is not the limit for Xiaomi, and I am confident that people will see an even stronger, more powerful Xiaomi in the future, and we will achieve a much more outstanding record in the Fortune Global 500 list next year.” Said Lei Jun, Founder, Chairman, and CEO of Xiaomi.
As per Xiaomi’s earning reports, Xiaomi totaled RMB245.9 billion in revenues in 2020. This contributed to Xiaomi to rise up to 338th place on the Fortune Global 500 List of 2021. The Chinese company remains is still posited for strong numbers for the entire 2021. It has exceeded the market expectations by far in 2020.
In the first quarter of 2021, Xiaomi’s total revenue for the period amounted to RMB76.9 billion, representing an increase of 54.7% year-over-year while adjusted net profit for the period came in at RMB6.1 billion, an increase of 163.8% year-over-year.
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Strong Smartphone Sales Record
This incremental growth is down to Xiaomi’s envious stronghold in the high-end smartphone market. Furthermore, its rapid growth in international markets and the development of the company’s new retail business have helped it improve its standing in the list.
Xiaomi’s focus on core technologies has been the driving force in creating an enhanced user experience and it has strengthened its position in high-end market segments through its Mi 10 and Mi 11 series. In Q1 of 2021, the global shipments of Xiaomi smartphones priced at RMB 3,000 or above in mainland China and priced at 300 Euros and above in international markets, exceeded 4 million.
Xiaomi’s global outreach has spurned its holistic growth. On July 16, Xiaomi announced that according to Canalys, the company took second place globally with a 17 percent share of smartphone shipments, surpassing Apple.
In international markets, Xiaomi exceeded 300 percent year-on-year growth in the Latin American market. Again, it had over 150 percent growth in Africa and greater than 50 percent growth in Western Europe. Currently, Xiaomi smartphones have entered over 100 markets worldwide. It has achieved number one ranking across at least 12 markets second in Europe in terms of market share. It has ranked number one in India for 15 consecutive quarters. Lately, counterpoint research suggests Xiaomi has become the No. 1 smartphone brand in the world for the month of June 2021.
Regarding new retail, Xiaomi’s physical stores have experienced fast expansion since 2020. The total number of Xiaomi stores in mainland China surpassed 5,500 at the end of April 2021. Meanwhile, there are more than 1,000 Xiaomi Stores in international markets. The physical retail network of Xiaomi is expanding rapidly across the globe.
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Xiaomi’s Next Avenue: Smart Vehicle Business
Xiaomi has continued to invest in R&D and talent, creating a series of new reward structures for its R&D team. It also initiated the second phase of the Xiaomi Smart Factory project. “Over the next decade, Xiaomi will be a new driving force in the manufacturing industry,” said Lei Jun at the company’s 10th anniversary. Smart manufacturing is emerging to be one of the core competitive advantages of Xiaomi.
Xiaomi is not limited to smartphones and AIoT portfolios. The Chinese tech giant is also stepping into the smart electric vehicle market. In March 2021, Xiaomi officially announced the company will start a subsidiary to operate the smart electric vehicle business. The company expects a total investment of US $10 billion over the next 10 years for its new venture. The initial phase of investment will be RMB 10 billion. Smart electric vehicles will be a significant driver of new growth for Xiaomi.
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