Xiaomi chairman Bin Lin

A report filed with the China Securities Regulatory Commission revealed that Xiaomi turned a profit of 347.48 million Chinese yuan ($56.1 million) in 2013, with an operating margin of 1.8 percent. The number is considerably less when compared to unofficial reports from earlier this year, which suggested a net profit of $566 million for the same period.

Although Xiaomi has ascended to become the third largest smartphone manufacturer by volume, its profits are a far cry from what other vendors in this segment boast. Samsung, who is undergoing a steep decline in sales, posted a profit of $3.5 billion in Q3 2014. It remains to be seen whether the Chinese manufacturer can figure out a way to significantly increase its profits while continuing to sell devices at low margins.

Xiaomi made headway into the Indian market earlier this year, where it continued to see overwhelming demand for its products. However, the manufacturer was ordered to halt sales in the country as it was found to be infringing on Ericsson patents.

Source: Reuters