For Xiaomi 2020 was to be a crucial year, the decisive: with Huawei, which inevitably would be freed of the market share in the west as a result of the ban, were created finally the conditions for the attack on the sector of the smartphone and increase its presence, and the perception of value linked to the brand. An example of this are the new top of the range I 10 and10 Prothat raise the bar of quality, but also that of price, with the more expensive version that comes to the threshold of 1000 euro.
The onset of the health emergency on a global level, however, he first jammed the production machine, and then has had and will have repercussions on the sales data. This, of course, is true not only for Xiaomi but for all the producers – we have seen, by the way, the fatigue that is making Samsung Galaxy S20 and its variants in terms of commercial results, and the lower 40% than those scored by S10 and the family in the same period last year.
In short, it is a year of decline and the forced break, where you can hardly overturn the hierarchies: but it will be important to determine the scenario that will follow, to be able to withstand the shock better than the other, and resume full production efficiency. And in this sense from Xiaomi begin to show signs of optimism: it seems that the crisishas only temporarily slowed down the plans, and not come so deep to change them.
Lei Jun, founder and CEO of the chinese giant, said on the state of things:
While the whole world is still under the shadow of the COVID-19, we have kept our attention fixed on the efficiency to overcome this “black swan” economic with all
In other words, after the stop of production, imposed by the government, Xiaomi has gradually regained normalcy, and now the80-90% of his production capacity has been restored. Just last week reopened more than 1800 retail stores throughout china, with 80% of suppliers that has now taken up the activities.
Wang Xiang, president of the company, had words even more positive:
The production was affected, but the pace of recovery has exceeded expectations.
And we wanted to specify that the effects of the pandemic were lower for Xiaomi and the other chinese manufacturers, with reference to the major markets namely, India, Europe and the United States. Clearly, there is also the need, for everyone, to reassure investors, but probably in Xiaomi had calculated the possibility of scenarios much more dark, and in the end were pleasantly surprised by the reactive capacity of the structure.
The forecasts developed by the company, now, describe an inevitable decrease in profits , which, however, will be followed by an increase in the demand, once the medical emergency will be returned (at least in large part).
Also because the results recorded in the 2019 were important, including those in the field of wearable computing, where Xiaomi has entered in 2014, and has recently clocked up 100 million units sold.
In the post on Weibo, which celebrates the milestone reached, there is also space for an announcement: the April 3, then a little, there will be a conference (of course, online, live stream) to announce a new product line of wearable. The most accepted hypothesis, at the moment, is that it could be the Mi Band 5, waiting on the market for June (the previous model, Giving the Band 4, we have recently named the best fitness tracker in the trade below € 50).