In a company conference, which was held on November 27th, Xiaomi Lei Jun, Chairman and CEO state that the company will manufacture cheap, 5G capable smartphone for only 1000 Yuan ($ 142).
He think, in china, 5G will be conventional about 3-4 years from now. Hence, this will give a large market for the latest phone. This is a mighty claim however looking at the company’s track record of producing feature rich smartphones at reasonable price, and the complete production volume it has achieve, Xiaomi might be the only company for this achievement.
It is estimated that 5G smartphone will catch anywhere from 40%-50% of the market in China alone over the course of the coming year. This give an opportunity for a company such as Xiaomi to obtain an edge over its competitors by giving 5G networking at an affordable price, in China.
In addition, in 2020 the 5G market is suppose to explode in after that. The company plan is to take full benefit from this, as in upcoming year, it will reveal over 10 5G capable smartphones.
In the conference, the company also deliver its financial report for the 3rd quarter of 2019. Xiaomi looks to be in prime position to carry out their plan due to a good amount of cash flow and sufficient inventory. The company has managed to increased its gross profit by 25.2% and net profit increased by 20.3%. The quarterly revenue increased by 5.5% and its average selling price per smartphone increased by 4.6% in China.