Xiaomi's offline strategy adjustment, smartphone sales expected to decrease by 13%

Insiders reveal that Xiaomi’s internal projections estimate a 13% decline in mobile phone sales this year, and they are adjusting their offline store strategy, shifting revenue focus to home appliances, stopping store expansion, and transforming offline stores from “business-oriented” to “operation-oriented” to improve efficiency. As of press time, Xiaomi has not responded. An insider states that these adjustments are communicated top-down from Xiaomi’s Beijing headquarters. Xiaomi employee Wang Yong (pseudonym), who has been with the company for two or three years, disclosed that last week they held a “Store Manager Conference and Store Operation Quality Improvement Launch Meeting,” conveying the above strategic adjustments. Nearly 300 people, including regional managers and store managers, attended, covering some coastal first- and second-tier cities. The core reason for Xiaomi’s adjustments is due to cost pressures. This year, mobile phone manufacturers are facing the most severe cost challenges in recent years. As AI (artificial intelligence) computing power demands increase, the prices of core components such as storage continue to rise, leading to a new wave of collective price hikes in the mobile industry in March. Mainstream phone manufacturers OPPO, vivo, and Honor have successively raised the prices of some models, and Xiaomi also announced a price increase on April 3. Huawei phones have not yet increased in price. (Financial Magazine)