Xiaomi expects China phone sales to peak at 500M; rules out IPO

first_imgHome Xiaomi expects China phone sales to peak at 500M; rules out IPO Related Previous ArticleCisco, Ericsson closed 17 transactions in Q3 but want more speedNext ArticleApple launches accelerator programme for Indian developers Strategy AnalyticsXiaomi Xiaomi off the hook in the US Kavit Majithia Author Tags center_img AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 19 MAY 2016 Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >> Read more US backs down on Xiaomi row Devices Handset maker Xiaomi believes smartphone sales in China will peak at approximately 500 million units annually, with growth continuing to mature in the market, reports Bloomberg.Smartphone shipments in the country reached a record 438 million units last year, according to Strategy Analytics, but recent figures indicate growth is beginning to cool.The research company claimed shipments fell 5 per cent in Q1 this year, from a year ago, to 104.9 million units, with increasing market saturation and a slowing domestic economy curbing demand.Xiaomi, which has seen several years of growth by adopting a model of selling budget smartphones directly to consumers, is now facing tough competition in mid-tier segments from larger rivals Huawei and Samsung, with domestic market share falling to 12.2 per cent from 12.8 per cent in Q1 this year.Speaking to Bloomberg Television, CFO Shou Zi Chew said “the natural ceiling for the market is about 500 million phones”.Notably, the company also missed its target of selling 100 million devices globally in 2015.No IPO plans Chew also reiterated comments from the company’s CEO Lei Jun in playing down talk of an IPO, stating that the company doesn’t need to raise money.He reportedly cited volatility caused by the US election and China’s transitioning economy as further reasons to avoid going down this route.“In today’s environment, it is probably not the best time, coupled with the fact that we honestly have no need to come to the market to raise any money,” he said. Xiaomi smartphone surge bears fruitslast_img

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