Poco has been a very successful venture for Xiaomi; the phone POCO F1 launched under its name sold and sold while challenging the ‘Flagship Killer’ tagline of OnePlus. But Xiaomi decided not to launch any more devices under the brand name and instead launch the new K series. The move has somewhat been questionable
But in recent good news for the Poco fans out there, Xiaomi has decided to let POCO go, and make it an independent brand. The move came after top executive Jai Mani -a former employee of Google and other core members left the sub-brand.
POCO F1 is the only device launched under the POCO brand for $300 and in 50 markets with flagship specs.
As per TechCrunch, a spokesperson at Xiaomi stated that POCO is an independent company, but it is unclear as to how it will be structured.
The brand was initially launched to compete with brands like OnePlus and Samsung. When the company launched the POCO F1, they targeted OnePlus, saying that the POCO F1 is the actual Flagship killer. While the phone made a lot of money for the company, it is not clear why the company did not launch any more smartphones.
In recent years the company has established itself as a king of mid-range and low-end devices in the Indian market. The company in 2019 unveiled K20 and K20 Pro with a flagship processor in order to compete with OnePlus.
Xiaomi also plans to bring it’s Mi flagship devices to India, following the success of the K20 Pro devices. Now with POCO being independent, the company can focus on making flagship devices to can compete with Samsung Galaxy S10 and OnePlus 7 Pro.
While the company has been doing well in India, it is facing fierce competition from companies like RealMe, which is using the same strategy as Xiaomi. RealMe has launched multiple devices in the same price range as of Xiaomi, and their new device RealMe X50 comes with a 90Hz display that is in straight competition with Redmi K30.
Apart from this, the company has bigger things to worry about.
Since the company went public in 2018, it has made 4.6 billion in last quarter Q3 of 2018. This number is down to 7.8% that the company makes every year. China is the origin of the company, Xioami blamed ‘downturn’ in China’s market as the reason for their lower revenue.
In China, apart from Huawei, every other smartphone company has been facing a drop in its shipment volumes. This is not a problem for Xiaomi as the company has boasted before that they earn minimal profits from their hardware. Most mostly their revenue comes from ads and Internet services.
The Internet services area is also not growing as fast as it should be for the company. It grew 12.3% year-on-year to 750 million and 15% since the last quarter. This indicates the company is facing challenges in every area, and with Google being the best player in ads out there, Xiaomi’s ad revenue is also falling.
The founder and chairman of company Lei Jun have said that they expect to increase their revenue with 5G. The company is gearing up to launch at least ten 5G enabled devices this year. This move may boost its hardware revenue, but there is still no word on its declining services revenue.
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Hello, my name is Parth Suthar, with a background in Engineering and a never-ending interest in technology has driven me to start this blog. From leaks about upcoming smartphones to tips and tricks I cover everything. Reach to me if you have any questions.