By Gillian Wong
HONG KONG--Chinese smartphone maker Xiaomi Corp., which recently
became the world's most valuable technology startup, said its
smartphone shipments more than tripled in 2014, beating its
expectations.
The company said it sold 61.1 million units last year, up from
18.7 million in 2013.
Lei Jun, Xiaomi's founder and chief executive, said in a post on
his verified Chinese microblog account that 2014 sales, including
taxes, more than doubled from a year earlier to 74.3 billion yuan
(US$11.97 billion).
Xiaomi didn't provide details on profitability.
"In 2015, the smart devices playing field will become extremely
competitive, especially as the growth of the smartphone industry in
mainland China slows down," Mr. Lei said. He also said the company
would be launching its next flagship device later this month.
Mr. Lei said competitors in the industry were seeking to imitate
Xiaomi's business model. He didn't specify how they were doing so.
Several Chinese smartphone makers have in the past year or so
adopted Xiaomi's strategy of selling more phones over the Internet
instead of joining with mobile phone carriers or selling through
traditional retail channels, which is more expensive.
Last month, the Chinese smartphone maker closed a funding round
that raised $1.1 billion, giving it a valuation of more than $46
billion, including the fresh capital.
Mr. Lei said Xiaomi sold more than a million smartphones in
India in five months.
The company's performance in India came despite a temporary
injunction issued last month by the High Court of Delhi on the sale
and import of Xiaomi handsets in the country. The court ordered the
temporary injunction as it waited to hear a patent complaint by
Swedish telecommunications-equipment maker Ericsson, which alleged
that the Chinese company was using its technology without paying
royalties. Later, the Indian court gave temporary permission to
resume the import of Xiaomi devices.
Mr. Lei also said Xiaomi would enter more overseas markets this
year, but didn't go into specifics. It has expanded in recent years
to seven other countries and regions outside the mainland,
including Taiwan, Southeast Asia and India.
The company comprises a web of offshore and Chinese entities. At
the top of its corporate structure is Xiaomi Corp., a Cayman
Islands-incorporated entity. Xiaomi H.K. Ltd., an offshore entity
that is wholly owned by Xiaomi Corp., recorded a net profit of 3.46
billion yuan ($566 million) last year, according to a confidential
document viewed by The Wall Street Journal in November.
Xiaomi, founded by Mr. Lei in 2010, has grown rapidly to become
the top-selling smartphone vendor in China by offering affordable
phones with features that rival high-end models. Xiaomi phones come
with a customized version of Google Inc.'s Android operating system
and the company often updates software based on user requests.
Xiaomi's current valuation puts it above all other startups
currently backed by venture capitalists, including Uber
Technologies Inc., the taxi-booking app that earlier this month
said a new round of funding valued it at $41 billion. Only Facebook
Inc. in 2011 raised capital at a higher valuation from private
investors--an investment from Goldman Sachs Group Inc. valued the
social network at $50 billion.
Write to Gillian Wong at gillian.wong@wsj.com
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