Things couldn’t get any better for Chinese smartphone giant Xiaomi as the company is rumoured to be set to shoot past ts 2017 revenue target. Reports emanating from China indicates that the tech company has indicated that its revenue target for 2017 could well be toppled by as much as 18%. Bankers projections show that Xiaomi is expected to rake in a net profit of at least $1 billion USD and this projection is based on the company’s revenue estimate of $17 billion to $18 billion. For 2018, Xiaomi’s profit is estimated to hit the region of $2 billion.
This latest projection reflects the positive comeback the tech giant has witnessed lately after a slump in sales in recent years. The slump led to a general overhaul of the tech giant’s business approach. The tech giant shifted from an online-focused sales model to integrating both online and offline sales. In addition, more brick and mortar stores were opened in China to cater for offline sales. We must not forget Xiaomi’s strong marketing burst in India which contributed immensely to its rebound. Xiaomi has also has re-launched sales in dozens of countries, including Indonesia, Vietnam, Russia and the United Arab Emirates.
Xiaomi is expected to roll out an IPO next year with a $100 billion USD valuation and with such revenue projections, that could well be possible. The tech giant’s revenue source transcends its cheap smartphone offerings and includes smart home gadgets as well as wearable. Xiaomi was recently shown in a report by IDC to have trumped Apple to emerge as China’s No.4 smartphone vendor. Despite its strong showing, it still has to contend with giants like Huawei, OPPO and Vivo for a slice of the market share.