Xiaomi, despite being one of China’s largest smartphone manufacturers, it struggles with slumping sales figures. There will be a new product launch that will come pretty soon and there are those that see it as not the required panacea to solve the company’s sales dilemma. Still, it is known that the Chinese manufacturer disrupted the mainland tech sector as it has created durable handsets but are found in relatively reasonable price points. It is also expected that it will reveal the Redmi Pro, which is its latest model within the budget-brand of Android smartphones, during an upcoming press conference in Beijing. This was confirmed by the company’s Chief Executive Officer Lei Jun within a recent Weibo post.
Xiaomi Expected to Release the Redmi Pro During an Upcoming Press Conference in Beijing
However, there are analysts that greeted the anticipated launch of the new Xiaomi device with caution instead of utmost excitement. Even though the company was heralded as the world’s most valuable tech start-up firm back in the year 2014, it currently faces challenges, especially when talking about its slumping sales figures along with its diminishing revenues.
According to the company’s financial report for the second quarter of this year, shipments have fallen at around 20-percent on an on-year period. This has been reported by Canalys on Tuesday. In the previous year, global shipments did grow by 22.9-percent in an on-year period, but this was still short when comparing it to the near-triple digit percentage growth that the company experienced in previous years, as per IDC.
These lackluster results have then sparked multiple waves of questioning towards Xiaomi’s strategies. Earlier this month, Forbes even published an article entitled, “The Dramatic Rise (And Fall) of Xiaomi.” Fortune magazine even ran an in-depth article that is titled “Xiaomi What You’ve Got.” Both of these articles have branded the Chinese smartphone manufacturer with its poor performance to be a reality check after a massive hype during the release of its first handset back in 2011.
Tay Xiaohan, senior market analyst at IDC, cautioned people about the upcoming release of the Xiaomi phone as he said the following: “I don’t think this one single model [the Redmi Pro] will be significant enough to help combat the slowdown in shipments. Students who used to purchase a Xiaomi phone may move on to the other more expensive brands when they start to work and can afford to spend more on a phone.”
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