San Francisco, CA, United States (4E) – Chinese smartphone maker Xiaomi had a big year in 2013. The company sold 18.7 million smartphones — up by 160 percent from 2012. Xiaomi previously set the target for 2013 at 15 million sold devices. The total sales last year reached an estimated $5.2 billion.
The numbers are surprising given that Xiaomi first released mobile devices only two years ago. Last month alone, Xiaomi sold 3.22 million units.
Xiaomi co-founder and president Bin Lin expressed they are focused on quality service to customers.
“Cellphones are really just like PCs were 20 years ago. They generated big profit margins in the beginning. But those margins are in the single digits now.
“The same thing is beginning to happen to smartphones. So rather than focus on devices where margins will decline, we’re focusing on services,” Lin said during All Things D’s D: Dive Into Mobile conference.
In 2012, the company managed to sell 7.19 million smartphones and recorded a revenue of $2.08 billion.
Lin believes Xiaomi can compete with the with the big names in the smartphone industry. It’s Xiaomi MI-2 flagship smartphone has the same specs as it’s Samsung and HTC counterparts.
“It’s got the same processor that Samsung uses in the Galaxy S4. But it costs about half as much. … We essentially price our phones at bill-of-materials,” Lin added.