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World’s 3rd largest smartphone seller Xiaomi earns just $56m last year

World’s 3rd largest smartphone seller Xiaomi earns just $56m last year

BEIJING: Xiaomi, the world’s third largest smartphone earned 347.5 million renminbi ($56 million) in net profit last year, according to a disclosure made to the Shenzhen Stock Exchange.

That gives the 4-year-old Chinese company an operating margin of just 1.8 percent, according to Reuters. For comparison, Samsung’s mobile division reported an operating margin of 18.7 percent last year, whereas Apple reported and operating margin of 28.7 percent for the year ended September 2013, according to Reuters.

Xiaomi slim profit underscores the company’s willingness to grow at any cost. The Chinese manufacturer’s stunning expansion has put many of its larger, more established rivals on notice.

Xiaomi did not immediately respond to a request for comment.

Xiaomi, which sells low-cost smart phones and tablets aimed at budget-conscious customers, has so far largely avoided western countries like the US, UK and Australia and has instead focused on emerging markets like China, Indonesia and India. It has drummed up a huge amount of buzz for devices like its Redmi 1S by holding online flash sales in which a limited number of phones go on sale at any one time.

In just four years, the company managed to become the third-largest smart phone provider in the world, following only Samsung and Apple, according to IDC. In August, Xiaomi topped Samsung as China’s leading smart phone maker, according to research firm Canalys.

Xiaomi latest efforts have focused on growth in Indonesia and India. Last week, however, Xiaomi confirmed it will suspend sales of its handsets in India after being served with an injunction by the Delhi High Court for infringing on Swedish telecommunications firm Ericsson’s patents.

Xiaomi submitted the regulatory filing as part of a $200 million investment in home-appliance maker Media Group.