the year its first yearonyear decline came during a quarter when xiaomi released its redmi note 2 a lowerpriced handset that sold for an average of 801 yuan 125 each on tuesday it unveiled a metallic version of that phone with a fingerprint sensor as well as a new tablet computer and air purifier substantial market growth might be reignited in the fourth quarter by chinas november 11 singles day shopping promotions and the latest version of the redmi note the company which traditionally unveils an update to its marquee mi smartphones during the third quarter hasnt yet announced a mi 5 after last years mi 4 i am not concerned about the valuation because over time their market is substantial said hans tung managing partner at xiaomi investor ggv capital over the next 12 months itll become increasingly obvious what xiaomi is doing in the smart home and services space xiaomi eschews the label of smartphone maker claiming instead to be an internet company furnishing a range of devices and online services xiaomi and its affiliates sell tvs air filters battery packs action cameras fitness trackers and even a selfbalancing scooter its nonhardware offerings include games payments mobile phone services and cloud storage no loyalty its those other products such as the mi air purifier 2 released this week which tung sees helping xiaomi expand its sales and keeping consumers coming back to an ecosystem that connects home devices to the internet and through mobile apps the ancillary businesses are still relatively small with the company expecting the services units to account for just 1 billion of its 16 billion in projected revenue this year sales of smartphones outside china accounted for just 7 per cent of its total in the third quarter according to strategy analytics xiaomi has struggled partly because competitors huawei lenovo group and gionee among others quickly copied its business model with ultrathin devices glossy websites and lower prices allowing consumers to easily switch to the hippest new phone xiaomi was very popular because it was the first brand that marketed its phones as being limited edition said chen si a 25yearold real estate worker in beijing who bought the mi 3 after its 2013 release citing its cool design i wouldnt say i am loyal to xiaomi i just think that a phone should be affordable and easy to use if not then ill just change a year later she switched to the iphone 6 bloomberg published on nov 27 2015 at 1153 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest