Integral to the company’s operations is its smartphone business. As of 2018, Xiaomi smartphones account for around 8.7 percent of the global smartphone market, trailing only Apple, Samsung, and Huawei in terms of market share. Its two flagship products of 2018 performed well in both the Chinese and global markets with the Redmi 5A and the Redmi 5 Plus/Note 5 accounting for a combined 3.5 percent of worldwide smartphone sales in 2018. Once dominated by Chinese consumers, overseas sales have begun to account for a larger and larger portion of overall sales, and forecasts suggest that the company will be doing 60 percent of its business outside of mainland China by 2022.
Another key segment of Xiaomi’s business is its wearables division. Since first entering the market in July 2014 with its Mi Band, the company has overtaken the long established market leader, Fitbit, and challenged the Apple Watch for the most popular new product in the market. As of the third quarter of 2018, the company had overtaken Apple as the market leader in the wearables market, shipping a massive 6.9 million units in that quarter alone.
Driven by the success of its smartphone and wearables products, Xiaomi has recently entered the smart home and connected device market. The company’s app, Mi Home, manages all of their smart home products and hardware offerings, including everything from smart vacuums to smart rice cookers. Xiaomi shipped nearly 2 million smart speakers in the third quarter of 2018 alone, and its SmartRobot vacuum has been an instant success. In combination with its manufacture of smart home devices, the company has also heavily invested into the internet of things (IoT) and artificial intelligence (AI), in an attempt to improve existing products and eventually integrate compatible technology offerings into more aspects of consumers’ everyday lives. The company’s AI assistant has over 34 million monthly active users, and with over 330 newly processed artificial intelligence patents, even bigger things are expected in the future.