Xiaomi made only 45 million euros profit in 2013

The 2013 annual figures of the Chinese electronics manufacturer Xiaomi show that the company works with wafer-thin margins. Xiaomi has managed to take a third position in the competitive smartphone market with small profits.

In 2013, Xiaomi made a profit of 347.48 million yuan, or 45 million euros, on a turnover of 26.58 billion yuan, or 3.44 billion euros, Reuters reports based on the Chinese company’s filed annual figures. A Xiaomi spokesperson confirmed the accuracy of the numbers.

The 2013 financial results show that Xiaomi operates with wafer-thin profit margins. In recent years, the company has been able to gain a lot of ground, especially in the smartphone market, by selling high-quality devices for a competitive price. This put the company in third place in the smartphone market, behind Samsung and Apple. However, the two market leaders operate at significantly higher profit margins than the newcomer. This raised the question among investors whether Xiaomi with its price war in the smartphone market can continue to maintain its position in the longer term. Despite this, Samsung in particular has been increasingly troubled by Xiaomi and other Chinese companies that bring cheap smartphones to the market.

Xiaomi seems to want to broaden its horizons. The Chinese electronics company has taken a significant stake in Midea, a company that makes home appliances, TechCrunch reports. The interest has a converted value of approximately 165 million euros.