Xiaomi aims to double sales next year

By Chen Limin (China Daily) Updated: 2012-12-28 11:03

Lei, who views the late Apple founder Steve Jobs as his idol, said he doesn't want the company to grow too fast amid its rising popularity.

"We aren't in any hurry. Those who die are the ones who want too much," he said.

The 43-year-old Internet veteran co-founded online retailer Joyo.com in 1994, and 10 years later sold it to Amazon.com Inc for $75 million. He listed Kingsoft, an antivirus software company, in 2007 and YY Inc, a social media platform, this year.

However, some analysts suggest that his expectation of doubling sales next year is a bit too aggressive.

"Every company hits a bottleneck after growing rapidly, and this is likely for Xiaomi, too," said Sandy Shen, an analyst at technology researcher Gartner Inc.

Most of Xiaomi's users are young people, who are sensitive to price, and the company needs to expand its appeal to other types of customers if it really wants to continue its fast growth, she added.

Xiang Ligang, a Beijing-based analyst and founder of industry website Cctime.com, also thought Lei would be under considerable pressure to achieve his goals next year.

"Xiaomi is very good at marketing, but when the current craze passes, it needs to come up with more ways to continue," he said.

The company may need to turn to traditional ways of selling phones, such as relying more on cooperation with mobile carriers, which will boost sales through large numbers of outlets, and offer better after-sales service, he added.

Xiaomi still sells most of its phones online, and has teamed up with two mobile carriers to sell them.

In June, Xiaomi raised $216 million in new funding largely from Singapore's sovereign wealth fund, the Government of Singapore Investment Corp, giving it a market valuation of $4 billion. In comparison, Nokia Corp has a current market capitalization of $15 billion.

chenlimin@chinadaily.com.cn

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