Technology start-up Xiaomi rings up $14.7bn in smartphones sales in 2014

CHINA’s Xiaomi, the world’s most valuable technology start-up, said smartphone shipments more than tripled in 2014.

Inside Xiaomi Corp.'s Headquarters And Showroom

CHINESE smartphone maker Xiaomi, which recently became the world’s most valuable technology start-up, has said smartphone shipments more than tripled in 2014, beating the company’s expectations.

The company sold 61.1 million units last year, up from 18.7 million in 2013.

Lei Jun, Xiaomi’s founder and chief executive, said 2014 sales, including taxes, more than doubled from a year earlier to 74.3 billion yuan ($14.7bn).

In the third quarter, Xiaomi rose to third place among global smartphone sellers, with a market share of 5.6 per cent, up from 2.1 per cent, according to data provider Strategy Analytics.

But industry leaders Samsung Electronics and Apple remain far ahead. In the first three quarters of 2014, Samsung sold 241.5 million smartphones, according to IDC. And in its latest fiscal year, Apple sold 169.2 million smartphones.

“In 2015, the smart devices playing field will become extremely competitive, especially as the growth of the smartphone industry in mainland China slows down,” Mr Lei said, adding the company would be launching its next flagship device later this month.

He said competitors in the industry were seeking to imitate Xiaomi’s business model.

He did not specify how they were doing so.

Several Chinese smartphone makers have in the past year or so adopted Xiaomi’s strategy of selling more phones over the internet instead of joining with mobile phone carriers or selling through traditional retail channels, which is more expensive.

Last month, the Chinese smartphone maker closed a funding round that raised $US1.1bn ($1.36bn), giving it a valuation of more than $US46bn, including the fresh capital.

Mr Lei said Xiaomi sold more than a million smartphones in India in five months.

The company’s performance in India came despite a temporary injunction issued last month by the High Court of Delhi on the sale and import of Xiaomi handsets in the country.

The court ordered the temporary injunction as it waited to hear a patent complaint by Swedish telecommunications equipment maker Ericsson, which alleged the Chinese company was using its technology without paying royalties. Later, the Indian court gave temporary permission to resume the import of Xiaomi devices.

Mr Lei also said Xiaomi would enter more overseas markets this year. The company has expanded in recent years to seven other countries and ­regions outside the mainland, ­including Taiwan, Southeast Asia and India.

The company comprises a web of offshore and Chinese entities. At the top of its corporate structure is Xiaomi Corp, a Cayman Islands-incorporated entity. Xiaomi HK, an offshore entity wholly owned by Xiaomi, recorded a net profit of 3.46 billion yuan last year, according to a confidential document.