Xiaomi's 2013 profits were actually one tenth of what was reported by the Wall Street Journal

Xiaomi's 2013 profits were actually one tenth of what was reported by the Wall Street Journal
Back in November, the Wall Street Journal cited internal documents as the source behind its report stating that smartphone manufacturer Xiaomi had earned $556 million in 2013. According to Reuters, Xiaomi actually made a lot less money last year. Regulatory documents read by the news agency show that the fast growing manufacturer actually booked a profit of $56.15 million last year, on revenue of $4.30 billion. Xiaomi's operating profit came in at $78.5 million.

Xiaomi sells its handsets for a low price which explains the thin 2% operating margin it reported for 2013. In comparison, Apple reported a 28.7% operating margin and Samsung's operating margin came in at 18.7%. With 5.6% of the global smartphone market in the third quarter of this year, Xiaomi surpassed LG and now is the third largest smartphone manufacturer on the planet.

Credit rating agency Fitch says that outside of Apple and Samsung, other smartphone producers are going to have trouble making money considering the pressure on pricing that Xiaomi is creating. Forrester Research analyst Brian Wang says that he was not surprised by the razor thin margins reported by the company.


The regulatory filings also revealed that Xiaomi Chairman and CEO Lei Jun owns 77.8% of the company that he co-founded back in 2010. As we told you earlier this month, Lei Jun was named by Forbes Asia as its Businessman of theYear for 2014.

source: Reuters

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16 Comments

1. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

I really love this company's approach to the market. I'm tired of overpaying for phones, especially when they come locked down and loaded with bloatware.

3. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

I would agree, then again we can no longer call about fair wages either. Not like our current phones had fair wages built into them but......yea.

5. Altair

Posts: 367; Member since: Feb 02, 2012

You love a thief and copycat. A Chinese OEM that uses childs in factories, steals its designs and modifies it a little, to avoid patent wars. You love a company that has little to none customer service or reliability to make long standing quality. Do I need to mention all malware that comes with these products. Many security services denies usage of these hardwares from it goverments, and for a good reason. Good luck with your lovestory! :)

15. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Good luck with your over price expensive phone, your high mortgages and credit card loan. I guess you don't mind living a penny less life as long as your fandom is well making billion from others like you. Stupidity has no boundaries.

12. afraaa

Posts: 138; Member since: Oct 23, 2014

go get some 1100 nokia

2. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

XiaoMi is the replica of Apple, not wannabe. Some genius analyst just copy and paste the profit margin from Apple to XiaoMi.

10. Settings

Posts: 2943; Member since: Jul 02, 2014

rep·li·ca noun 1 :an exact reproduction (as of a painting) executed by the original artist 2 :a copy exact in all details ; broadly :copy In short, they copy what Apple does?

13. HugoBarraCyanogenmod

Posts: 1412; Member since: Jul 06, 2014

Keywords: details They spend their hardworking time to get every single details of the pros and trim away all the cons, and that what makes a new products special

14. Settings

Posts: 2943; Member since: Jul 02, 2014

Hardworking time just to copy? Why not try to innovate? (And work on that grammar too)

16. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

everything which is great is always a copy from Apple... to some people.

4. Settings

Posts: 2943; Member since: Jul 02, 2014

Apple got some mouths to feed to, patents to pay, after sales service, engineers to pay, an ecosystem to maintain, research to dwelve. What does Xiaomi do?

7. GalaxyS5

Posts: 430; Member since: Aug 05, 2014

well, yes apple does all these, but in return makes amazing profits .. and I agree with you about the xioawiwimimi part, and here's the answer .. they just copy apple ..

6. Shubham412302

Posts: 578; Member since: Nov 09, 2011

how can they even earn profit by selling phones dirt cheap

9. Rydsmith unregistered

They don't need to invest in R&D, marketing, or any form of warranty. For their R&D they just take what the next iPhone looks like and copy it, slap Android and a terrible UI on it and call it a day. For marketing...well just take a look, their site is a replica of Apple's. So yeah, when you don't need to invest much it's rather easy to make money.

8. GalaxyS5

Posts: 430; Member since: Aug 05, 2014

Well, I don't know what they're doing .. copying apple/sony/samsung and selling with nearly no profits .. why not put a more attractive name? make it's own devices? and a sleek UI that does not look like ios? and sell at a slightly higher price tag?

11. afraaa

Posts: 138; Member since: Oct 23, 2014

:)))))))))))))))))))))))))))))))))))))))))))))))) chinaaaaaaaaaaaaaaaaaaaa

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