The Chinese tech mogul Xiaomi has announced that it will invest at least 50 billion Chinese Yuan to maintain its healthy business growth. The company aspires to be more competitive in the smartphone industry that it would improve its 5G, artificial intelligence (AI), and Internet of Things (IoT) services.
According to the founder of Xiaomi Lei Jun 2020 will be the year of breakthroughs for the company. He claimed that the brand would delve into the 5G businesses and announced to his WeChat employees that it would be a critical year for them.
Lei exclaimed that the company would push forward and allot bigger investments on smartphones incorporated with the AIoT (AI plus IoT) strategy. These are bout core growth engines that Xioami would observe in 2020.
The company was also reported to allot about 10 billion Chinese yuan in the next five years to the 5G, AI, and IoT tech markets. When the company first considered the idea that their brand would incorporate an "All in AIoT" platform, it had already hinted that they would first fully verify the possibility and correctness of the move and that whether the necessity would make the company more competitive in the tech market.
Thus, Lei then announced further that Xioami would invest at least 50 billion Chinese yuan instead of 10 billion over the next five years. He also believed that the new business strategy would make the brand successful and become more competitive in smart scenarios.
The report claimed that Xiaomi is currently facing stiff competition in the smartphone market. It was also revealed that its most challenging competitors are also Chinese Android-makers such as Huawei. The report claimed that the latter has eroded the tech market with big investments as well.
The report also indicated that Xioami had been experiencing a slump on its smartphone shipments in 2019. The decline was at 3.6 percent compared to the previous year's 7.8 percent. Despite the decline thereof, the report revealed that the company still experienced an increase in its total revenue by 5.5 percent.
Last January 2, 2020, Xioami celebrated its 10-year anniversary. During which, Lei also shared that the brand had reached an unprecedented record of being the first smart TV company to ship more than 10 million units in China alone. The values were those from the year 2019.
To close his message, Lei added that Xioami would also follow five guidelines moving forward. He claimed that they would still maintain a cost-effective strategy on all its products but, at the same time, prioritize technological innovations.
