Xiaomi’s co-founder and CEO Lei Jun appeared on Bloomberg in an interview where he shared information related to the company’s performance so far and what the company is looking forward to in the new year.
The company’s share dropped in the past few days, wiping off around $6 billion of its market valuation. However, Lei Jun shrugged that off and says that the company is adopting next-generation technologies which should energize demand for its smartphones.
While he did not comment on how an economic deceleration might affect the business, he was hopeful that the 5G technology will revive demand for smartphones as well as the host of internet services that Xiaomi offers. The company is offering a range of online services, including movies and music streaming to around 220 million users. He said:
In China, the penetration rate of smartphones is extremely high. But I think we are at the eve of 5G. I believe when 5G phones start to get popular, the overall demand from China will recover.
Xiaomi, which is dominating the Asian market, is now planning to expand to other regions. The company will soon expand to the European market but there’s no progress related to the US expansion plans. This could probably because of the on-going US-China trade war. He said that over the past two to three years, the company has entered about 80 countries and regions and is hoping that the company keeps that momentum going.
Yesterday, alongside the launch of Redmi Note 7 smartphone, the company has also announced that the Redmi brand will now work independently of its parent company. This move will enable the Chinese company to distinguish the products, operations, and working methods. It now has three brands — Mi for premium high-end phones, Redmi for budget devices and Poco for “affordable flagship” devices.