Lei Jun’s internal letter revealed:new smartphone shipment record in Q2

Innoclan Official Website: http://www.innoclan.com/en/index.html

How are you doing, my friends!

Xiaomi held a Pledge of Allegiance Campaign for Xiaomi smartphones this afternoon and I announced a good news:Xiaomi shipped 23.16 million smartphones in the second quarter of 2017, a 70 percent spike from the previous quarter, a new quarterly record. It means that Xiaomi regained its fast growing momentum after 2 years of recalibration.

It’s asignificantmilestone in the history of Xiaomi development. There are no other phone companies, except for Xiaomi who took a sharp downturn and managed toregain a rapid growth trajectory.

Except for us! Let’s talk about how we managed to do this.

Technological innovation oriented, with a customer-centered policy to pushdelicacy management forward

We have been continuously amping up research and development investment over the past few years and achieved a great success.Xiaomi in Februarylaunched Surge S1, with a chipset breakthrough designed and developed in-house. We also made a great progress in developing core phone components such as cameras, screens and batteries. It exhibited our technological developing strength when we launched Mi6 smartphone with dual cameras in April and 31-day standby Max 2 smartphone in May. We’ve applied for 7,071 invention patents and secured 2,895 patent authorizations last year.

At the beginning of this year, I organized more than 10symposiums with the Quality Committee to hammer out a detailed quality guideline and set up a Quality Supervision office. Our goal is to take the market with storm of quality!

We have to admit that the shipment last year was way below our goal, largely because of product shortage for several months. It’s been our most serious challenge since our foundation. However, we proved our increasing delivery capability by Q2 shipment.

New retail model upgrade, online and offline integration

Xiaomi is an internet conglomerate in which e-commerce is our foundation. On one hand in terms of online operation, we keep improving shopping experience in Xiaomi Mall, and attach great importance to online platformpartnership. On 18th June this year, we’re the champion leading smartphone sales on Tmall, JD and Suning platform.

On the other hand in terms of brick-and-mortar stores, we’ve opened 123Mi Home stores by 7th July. A newly opened store is always more popular than the last one, marking the greatest area-effectiveness in the industry. On 8th July, we’ll open 14 more stores.

3 years of investment paid off, international business grew exponentially

After 3 years of investment andhardworking, we keep getting new achievements this year, marking year one of overall international business growth.

We had a remarkable shipment in India in which our revenue spiked 328% of last year and market share moved to the second place. Xiaomi smartphone became the most popular and RedMi Note4 the bestseller in India. In the meantime, we have achieved great success too in Indonesia, Russia and Ukraine.

Marching into international markets is the next big thing after smartphone craze and change of smartphone intier-3 and tier-4 cities in China. Seizing the next big thing is the debut of Xiaomi embarking on a journey to the global tech giant list.

How could we regain our fast growth momentum? The bottom line is Xiaomi business model and Xiaomi value.

It proved the vitality and robustness of Xiaomi business model in times of growing in a super-fast speed and rising again after strategic adjustment in the history of Xiaomi.

As long as we keep being friends with our customers, offering quality products with sincerity and passion, we’ll eventually win over customers and the markets.

These achievements came with greatefforts. I want to thank all the die-hard fans for all the trust andacknowledgment and thank all the partners for their unyielding support, most importantly, 13,000 staff for working day and night to make things done.

The smartphone market is still a cut-throat competition. It’s just the beginning of our Odyssey. In order to keep growing, we have to keep being guided by Xiaomi value and keep innovating. Let engineers do their work without restrictions. There will be no boundaries for exploration orlimitations for investment. Next year we’ll recruit up to 1,000 engineers for smartphone development to reinforce our innovation line.

At the beginning of this year I announced that the worst time had gone and we set a humble goal: revenue of ¥100 billion. All statistics suggest that we have a high chance to achieve our goal this year. New chapter is just beginning, predicting a promising future. Our odyssey is as ambitious as the Age of Discovery.

Today I set again a new humble goal for us: 100,000,000 pieces of smartphoneshipment in 2018!

Lei Jun

Xiaomi Founder & CEO

7th July, 2017

As a global online platform for innovative products and an affiliate of PCASE(stock code833908) invested directly by Xiaomi, Innoclan is sourcing international brands to join Xiaomi platform. Partnered with Foxconn, Innoclan launched Program Foxtory to help small and medium companies to deliver big orders in terms of manufacturing.

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