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 apps. Xiaomi CEO Lei Jun announced his intention to increase the amount of revenue from mobile services to $ 1 billion, Vedomosti reports. For Xiaomi, it is now important to make their mobile services more meaningful, becoming not just a smartphone supplier, but an Internet giant.

Recall that at the end of 2014, Xiaomi has become 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 buyers of its smart phones customers who pay for various services of the same developer.

The company's growth is also due to the successful sales model for Xiaomi devices - a Chinese startup sells its products via the Internet without spending money on maintaining its own offline stores. In addition, Xiaomi actively uses in its work advertising through social media. Last year, this company ranked first in China in terms of supply of smartphones.
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According to the company's management, the total revenue of Xiaomi this year should be about $ 16 billion. Thus, $ 1 billion of revenue from mobile services is about 6% of all revenues. Last year, revenues from mobile services amounted to slightly less than $ 300 million. According to experts, the net profit of the controlling company was $ 559 million.

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

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