In 2018, Xiaomi promised not to exceed a net margin of 5%
Today, Xiaomi Group published a report on its financial activities for the fourth quarter and for the whole of 2019, confirming that the total margin of all equipment that Xiaomi sells does not exceed 1%.
This is an interesting statement, as Xiaomi CEO Lei Jun said in the spring of 2018 that the company will try to never exceed the net margin of 5% on all its products, including smartphones. And in the fall of 2019, he said that the reason for the popularity of Xiaomi smartphones lies in the fact that the gross profit of the company from their sale is 8-9%.
If we talk about financial results, the company’s annual income for the first time in history exceeded 200 billion yuan (about $ 28 billion), foreign income exceeded $ 10 billion, investment in research and development amounted to $ 1 billion. According to the supply of smartphones (125 million) units, the manufacturer entered the four leaders. Deliveries of smart TVs in the Chinese market exceeded 10 million units.
