Xiaomi announced that it shipped 23.16 million smartphones in Q2 2017, making it the best quarter ever for the Chinese company. The company faced a slowdown in sales last year over supply constraints, with CEO Lei Jun announcing a series of broad changes at the end of last year. It looks like the "recalibration" has worked, as Xiaomi noted a 70% uptick in sales from Q1 2017.
Xiaomi CEO Lei Jun noted that the increase in sales was down to a new retail model that sees the brand focusing more on offline retail. The company now has 123 Mi Home stores in China, and is set to open 14 additional stores tomorrow. The company is also partnering with online platforms to boost its visibility, noting that it recorded the most number of smartphone sales on JD.com, Tmall, and Suning during the mid-year "618" shopping festival.
Xiaomi's global business has also contributed significantly to its fortunes, with revenue from its Indian unit increasing 328% year-on-year. The Redmi Note 4 was the highest-shipped smartphone in the country, and the manufacturer opened the first Mi Home outlet in India earlier this year. The retail push is set to continue over the next two years, with Xiaomi planning to launch 100 stores across the country.
Alongside a more aggressive retail strategy, Lei Jun noted that the company's focus on R&D gives it an edge in this space. Xiaomi introduced its first -in-house chipset, the Surge S1, earlier this year, and Jun also highlighted advancements it made with camera and battery technologies with the Mi 6 and Mi Max 2.
Looking forward, Lei Jun is setting a revenue target of $14.7 billion (100 billion Yuan) for 2017, along with a shipments target of 100 million for 2018:
Today's accomplishment is not an easy feat. We offer our sincere gratitude to all of our Mi Fans for the trust they have placed in us over the years. We are grateful to our partners for their support, and especially to Xiaomi's 13,000 employees and families for your dedication.
The smartphone market is brutally competitive, and we are only taking the first steps in our journey. In order to continue growing, we must keep true to our core values, and innovate relentlessly. We have to give our engineers the freedom to think outside of the box, and explore fearlessly without boundaries.
We set no limit when it comes to innovation and investment. In the next 12 months, we will need to hire thousands of R&D talent for our smartphone business and further bolster our innovation capabilities.
I told everyone at the start of the year that the most difficult times are behind us. I also set a humble revenue goal of RMB 100 billion for the year. I am now confident we can achieve this goal. A new chapter for Xiaomi has just begun, and so many possibilities lie ahead of us. Our future is as vast as the constellations and beyond.
Finally, let's just add another humble goal: to ship 100 million smartphones in 2018!