Xiaomi plans to increase revenue from mobile services to $ 1 billion



    The Chinese company Xiaomi plans to increase its market share in mobile services, including games and paid applications. Xiaomi CEO Lei Jun announced his intention to bring revenue from mobile services to $ 1 billion, Vedomosti writes. For Xiaomi, it is now important to make their mobile services more meaningful, becoming not just a smartphone provider, but an Internet giant.

    Recall that at the end of 2014, Xiaomi became the most expensive technology startup in the world. At the same time, the company's value is growing on the expectations of investors who believe that Xiaomi will be able to make the buyers of its smartphones into customers who pay for various services of the same developer.

    The growth of the company is also due to a successful Xiaomi device sales model - a Chinese startup sells its products over the Internet without spending money on maintaining its own offline stores. In addition, Xiaomi actively uses advertising through social media in its work. Last year, this company was the first in China in terms of smartphone shipments.

    According to company management, Xiaomi's total revenue this year should be about $ 16 billion. Thus, $ 1 billion in revenue from mobile services accounts for about 6% of all revenues. Last year, revenue from mobile services amounted to a little less than $ 300 million. According to experts, the controlling company’s net profit was $ 559 million.

    The head of Xiaomi believes that in the near future, Alibaba and Tencent, who earn money on various services and software, will become competitors of his company. “The way Tencent and Alibaba make money today is the way Xiaomi will make money in the future,” said Lei Jun.

    Currently, the company is actively building data centers outside of China. After the introduction of these facilities into operation, Xiaomi will launch a cloud service for Indian users, this should happen before the end of the year.

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