Chinese mobile phone giant Xiaomi has signalled a slowdown after an 'amazing year' of expansion.
In an open letter to staff, Xiaomi's chief executive Lei Jun said: 'In the first few years, we pushed ahead too fast. We created a miracle, but also drew on some long-term growth. So we have to slow down, further improve in some areas and ensure sustainable growth for a long-term future.’
Xiaomi would not disclose how many handsets it sold in 2016, though the company admitted that it was still not making a profit from phone sales. Market analysts believe that after shipping 71 million devices in 2015, sales over the last year have slumped, in a trend reflected in the wider China mobile industry.
Faced with difficulties breaking into the international market, Xiaomi is having to try to take market from other brands in China, and finding it hard to compete with the likes of Apple and Samsung.
Despite Xiaomi's problems, Jun said he was optimistic about the future, pointing to increased sales in India and developments in smart appliances.
‘I believe that high-quality products at accessible prices will win more people’s hearts,’ he concluded.