Xiaomi India sets to achieve revenue of $2 billion this year

Xiaomi is going to redefine the Indian market with a steep revenue of $2 billion it plans to generate this year, twice the amount from 2016.

The growth is a result of rise in smartphone sales and brand expansion in the country, according to Manu Jain, Xiaomi India Head.

"We have seen 328 per cent growth in H1 2017 compared to same period last year. This was driven by strong sales of devices like Redmi Note 4, Redmi 4A and Redmi 4. 2X growth over last year is definitely achievable in 2017," said Jain talking to PTI.

Last year, Xiaomi had registered a total revenue of $1 billion. Besides, during first quarter of this year, the company had a market share of 14.2 per cent in India.

The company is pushing hard to achieve the expected revenue this year. It is expanding its retail presence as well as after-sales service. Compared to the beginning of the year, within a period of six months, Xiaomi India has increased its service centres from 225 to 500.

The Chines handset maker is also setting up Mi Homes to allow consumers to experience the products before buying them. It set up the first Mi Home was in Bengaluru in May.

"We had said we will set up 100 such Mi Homes. The next two will come up within this month in Bengaluru. However, we hope to have one Mi Home each in Mumbai, Delhi, Chennai and Hyderabad within this quarter," Jain said.

Xiaomi competes with the likes of Samsung, Lenovo, Vivo and Oppo in India.

With shipments of 6.2 million in the Oct-Dec quarter last year, Samsung still leads the market with a 22 per cent share.

Chinese handset maker Oppo grew 1578 per cent on year in the fourth quarter of 2016 to reach third spot, grabbing 9 per cent of the market.

Xiaomi had recently launched a new handset Mi Max 2, priced at Rs 16,999.

Jain believes though the 6-inch display handset category is nascent, it is fast growing as more and more people consume content on their mobile screens and look for larger displays.

"Globally, Mi Max (first generation) sold 3 million units. We are sure the second generation – Mi Max 2 –will be received well too," he said.