Summarizing Xiaomi’s 2019 plan, there are three main directions – 5G, IoT and winning more market shares in the European market.
LEI Jun (雷军) recently highlighted three things on Two Sessions, the annual meeting of China’s top lawmakers and political advisers, which are 5G, IoT and commercial aerospace.
For Xiaomi, maybe commercial aerospace sounds too advanced at this stage, but the other two are closely followed.
Back to February 24, 2019, Xiaomi launched its first 5G phones, the Mi Mix 3 5G one day before this year's Mobile World Congress (MWC) in Barcelona. The phone is selling at EUR 599 (USD 678), much cheaper compared to Huawei's Mate X, 5G smartphones, selling at EUR 2,299 (USD 2,604).
Surprisingly, its first 5G phones were not firstly launched in China. However, LEI said soon it will be available in China.
LEI believes that 2018 is just the beginning, and full commercialization will take place in the next 2 to 3 years.
On Xiaomi's 2018 Annual Party, LEI came up with a duo engine strategy integrating phones with AIoT (Artificial Intelligence & IoT).
LEI claims CNY 10 billion (USD 1.5 billion) will be used in AIoT field in the next 5 years.
Its IoT platform currently connects more than 132 million devices (excluding phones and laptops) globally, the largest platform in the world.
Globally speaking, according to IoT Analytics, there will be 10 billion and 22 billion devices connected in 2020 and 2025. The market value in 2018 is around USD 151 billion.
According to Qianzhan, the market size in China will go over CNY 7.24 trillion (USD 1.08 trillion) by 2022.
The journey to the West
In 2018 ending the third quarter, around 43.9% of its revenues are from overseas.
In 2019, East and West Europe and some other ex-Soviet nations will be its main targets.
It ranks fourth place among top 5 phone vendors in Europe in the last quarter of 2018 with shipments taking 6% of the market total.
Chinese phone vendors take 32% of the market total, rising from 24% in 2017.
One concern associated with Xiaomi entering the European market is the patent related.