Daily Management Review

Xiaomi to invest $ 1.46 billion in Internet of Things


Chinese smartphones manufacturer Xiaomi Corp. plans to invest more than 10 billion yuan ($ 1.46 billion) in the Internet of Things (IoT) technology over the next five years, reports Securities Daily.

Xiaomi has long been developing this strategy. At the end of last year, the company created another sales department, in addition to sales of telephones. The new department is responsible for sale of televisions and household appliances.

Xiaomi also recently invested in consumer electronics manufacturer TCL.

A source in the company, however, said that smartphones remain the main business of Xiaomi, and it is not planned to change it.

According to the source, Xiaomi will expand its presence in the overseas smartphone markets this year. At the same time, IoT equipment, in particular smart TVs, will start entering the world market and will be actively promoted.

Xiaomi seeks to diversify sources of income as demand for smartphones around the world weakens. At the same time, the company expects demand to recover with the advent of fifth-generation ultra-fast wireless communications.

The Chinese smartphone market, which remains the largest in the world, showed a strong decline in 2018, and a further decline is expected in 2019.

According to analysts at Canalys, shipments of smartphones to the PRC decreased by 12% last year, and in 2019 they will fall below 400 million units for the first time since 2014. This may lead to a fall in the global smartphone market by 1%, experts say.

source: bloomberg.com