“Xiaomi made only 45 million profit in 2013”

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From the annual figures for 2013 from the Chinese electronics company Xiaomi, shows that the company works with very thin margins. Xiaomi has low profits and a third position in the competitive smartphone market managed to conquer.

In 2013, just booked Xiaomi a profit of 347,48 million yuan, converted to eur 45 million, on revenue of 26,58 billion yuan, or 3,44 billion euro, reports Reuters, based on registered annual results of the Chinese company. A spokesman from Xiaomi confirmed the accuracy of the figures.

From the financial results for 2013 show that Xiaomi with wafer-thin profit margins work. The company knew the past few years, particularly in the smartphone market a lot of ground to win by good quality equipment for a competitive price to sell. Thus, the company realised a third place in the smartphone market to conquer, behind Samsung and Apple. The two market leaders, however, work with considerably higher profit margins than the newcomer. Therefore loomed among investors, the question on whether Xiaomi with its price war on the smartphone market its position in the longer term, it can continue to maintain. Nevertheless, in particular, has Samsung suffered more and more from Xiaomi and other Chinese companies that have cheap smartphones on the market.

Xiaomi seems to be horizon or to want to broaden. The Chinese electronics company has a significant stake taken in Midea, a company that is a household appliances, if a message to TechCrunch. The interest has a value of only about 165 million euros.