"Although the phone sales by Xiaomi have reduced significantly, the Chinese device maker is completely at peace and doesn’t have a thing to worry about. Why is that so? Well, for the simple reason that the device maker claims that it doesn’t make a single dime on its phones.

In an interview with Reuters, Xiaomi’s Global Vice President, Hugo Barra, said that, “Basically we’re giving [handsets] to you without making any money. We could sell 10 billion smartphones and we wouldn’t make a single dime in profits”. If anything, Barra went on to tell Reuters, Xiaomi’s phone business isn’t solely concerned with selling hardware; it’s more associated with recurring revenue from services over the time span of a few years.

On the one hand, the company is not affected at all by their decreased sales of phones. However, on the other hand, the company is anticipating higher profits that it says will be driven to them through the sales of smart home devices and its software ecosystem. For the record, the manufacturer has made significant investments in India and Asia already. At the moment, as Barra claimed, the company is now moving forwards with trying to lay the groundwork for direct sales to consumers that are based in the US.

At the moment, the manufacturer is also about to unveil an all new product at the CES 2017. For the moment, this is the first ever time that the manufacturer is going to be part of the electronics trade show. However, Xiaomi has not provided any information whatsoever pertaining to its latest product. For that reason, it is safe to say that the new product might not even be a phone. Just so you know, the manufacturer is known for the sale of electronics of all kinds. This includes fitness bands, phones, robot vacuums, electric bikes and even rice cookers. However, what makes the products manufactured by Xiaomi stand out amongst the rest is the fact that these are priced far lower than its rivals."