Xiaomi misses sales targets

missed-target-550x330Smartphone maker Xiaomi admitted that it had shipped more than 70 million handsets in 2015, and while this figure might be seen as great in the rest of the world, the company missed its own ambitious targets.

The figure was announced in a photo featuring Xiaomi President Lin Bin which was posted on the company’s microblog with the banner: “2015 Xiaomi mobile shipments: Over 70 million!”

However this was putting a brave face on things. Earlier this year Xiaomi had estimated total annual sales of 80-100 million, but then in July reported semi-annual sales that for the first time were lower than the previous six months.

Xiaomi has discovered that its main domestic market was saturated.

The Tame Apple Press is cheering that the news is proof that Apple will win in China as Xiaomi was seen as its only rival. This is rubbish of course, but it does not stop Reuters repeating it. The best that Apple could have sold in China was 20 million. Xiaomi’s main rival is Lenovo and Huawei.

Still it is not bad given that the company has only been running for five years and in the past has been locked out of countries with strong IP law enforcement. The company has put its market value at $45 billion. It also lacks many products to sell.

Xiaomi’s annual sales growth for the year was now 14.5 percent, he said, still above the average overall annual market growth rate of 12 percent. Shah forecast 2016 growth at 16 percent, based on expectations that Xiaomi will start sales in the United States, Latin America and Eastern Europe.