tech2 News StaffOct 11, 2017 09:22:20 IST
Xiaomi India managing director Manu Jain revealed plans for pushing the company towards internet services.
Speaking to The Economic Times (ET), Jain stated that the company intends to replicate its China model here by “monetising a host of services such as finance and entertainment.”
Xiaomi’s business model is interesting because the company aims to sell devices almost at cost. This leaves a very small profit margin. As a 2014 Bloomberg report suggests, the company profits from selling smart home products and internet-based services such as online videos and themes. Xiaomi sees itself as a company delivering software and services to its hardware. In an interview with GigaOm, Xiaomi’s ex-VP Hugo Barra had stated, “We are an internet and a software company much more than … a hardware company.”
Indicating that it took Xiaomi over seven years to establish itself as an internet-company in its home country of China, Jain told ET that replicating that model in India would take a while. He did add that plans for this were already in place and that the company was “carefully evaluating on when to launch these services.”
As per a report in June this year, Xiaomi is the second-highest selling smartphone vendor in India, second only to Samsung. The company also features in the top 5 global smartphone vendor shipments, according to various reports.