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[Xiaomi] Lei Jun Annual Conference Speech: Launched the "Mobile +AIoT" Etc.

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00:20, Jan-12-2019 | From PC
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This post was edited by VikuBalupura at 07:21, Jan-12-2019



Lei Jun Annual Conference Speech: Launched the "Mobile +AIoT" dual-engine strategy, 5 years 10 billion yuan All in AIoT


Dear Employees of Xiaomi,
Happy New Year everyone!

For every Mi, 2018 is a milestone year. This year, with the efforts of all people, Xiaomi succeeded in IPO in Hong Kong and achieved great results in various fields.

How is Xiaomi doing in 2018? Here, I want to report to you through 8 results.

1. On July 9, 2018, we successfully listed on the main board of Hong Kong.Being able to go public in the face of the unfavorable capital market is a huge success in itself, and we have become the first listed company with different rights in the HKEx, creating the largest IPO in the history of Hong Kong, and the world’s number one in history. Three major technology stocks IPO.

2. 2018 is the year in which our mobile phone has once again broken through. On October 26, 2018, we achieved the goal of exceeding 100 million units of annual shipments two months ahead of schedule, consolidating the position of the first camp of global mobile phone brands.

3, 2018 is the year of Xiaomi's power generation. It took only 5 years for Xiaomi TV to reach China's first place, and achieved great success in overseas markets. We also entered the big white electricity market, and tested the water to introduce air conditioners, washing machines and other products.

4, 2018 is the year of the AeoT layout. We are the world's largest IoT consumer-grade IoT platform, connecting 132 million devices (not including mobile phones and laptops), and the number of activation devices built by the small love students exceeds 100 million.

5. 2018 is our year of internationalization. We have entered more than 80 countries and regions around the world, and the mobile phone market in 30 countries and regions has entered the top five. As of the third quarter of 2018, overseas market revenues accounted for 43.9% of the Group's total revenue.Especially in India, mobile phones maintained the number one shipment for five consecutive quarters. In the markets of Indonesia, Russia, Spain and other countries, we have also achieved dazzling results.

6. In 2018, the Internet Corps began to take shape and Xiaomi’s financial business set sail. Our Internet services have started well on non-mobile and overseas markets, showing strong momentum. Our Internet finance business, while serving rice noodles, has also begun to fully serve our industry chain partners and financial institution partners.

7, 2018 is a year of quality breakthrough. In 2018, the group held 245 quality seminars. There are quality promotion meetings almost every day. It is precisely because of the quality, we have won the "Quality and Technology First Prize" of the China Quality Association in 2018, and the technology related to the nuclear industry and the launch vehicle, together with the highest quality podium in China, and became the first to receive this. An award for internet companies.

Just yesterday, we also redefine the quality standards of mobile phones. The "Little King Kong" red rice Redmi Note 7 provides an 18-month long warranty, which raises the industry standard by 50%. Here I want to say that quality is a full-time project, and high quality is inseparable from the due diligence of each of us.

8, 2018 is still the beginning of the construction of millet organization. We made the most important organizational restructuring in the history of the company and began the transition from the guerrillas to the regular army. We have newly established the Group Organization Department and the Staff Department, reorganized ten first-level departments, and let a large number of young management cadres embark on the front line. This year is also a harvest year for Xiaomi talents. We have introduced a large number of top technical and management talents represented by Lu Weibing.

In 2018, it was a milestone in the history of Xiaomi's development. It was the harvest year of Xiaomi's eight-year stage victory, and it was the beginning of Xiaomi's new journey.

The students have worked hard! I would also like to thank everyone who is behind us in support of our Xiaomi family, thank you!

How do we do it in 2019?

Classmates, maybe everyone feels it, winter is here. In 2019, we are about to face the most severe challenges, and there is no room for blindness and optimism.

From the external environment, the Sino-US trade war has increased the uncertainty of the economic situation. From the mobile phone industry, the overall lack of demand in the global smartphone industry is a fact that is in front of us. This winter, everyone’s days are very bad.

At the same time, we also face many internal challenges. The two main contradictions currently facing the development of Xiaomi are:
The public's expectation of Xiaomi and the contradiction between Xiaomi's innovation and development speed;
The contradiction between the high-speed development needs of Xiaomi and the existing organizational management capabilities.
The challenge is very serious, but it can be overcome; the contradiction is very prominent, but it can be solved. The good news is that both internal and external challenges are in the process of being solved, and all we need is more time.

In the face of internal challenges, we have been constantly breaking through innovation, upgrading quality, upgrading our brand, expanding channels, strengthening the functions of the Group's headquarters, and strengthening strategic guidance and organizational development. This process will take two to three years from the next qualitative leap.

In the winter of the industry, we often say that winter is coming, will spring be far behind? 5G is the spring of the mobile phone business. The advent of the 5G era will drive a new wave of changes in the smartphone industry. But we also need to be soberly aware that this scene will not happen immediately. It is also two to three years away from the large-scale commercial use of 5G.

For these two to three years, the bigger the challenge for us, the greater the opportunity. Because the more winter, the more competitive products that are “moving people's hearts and prices are good”; the more winter, the more efficient the company's ability to survive and adapt to development; the more winter, the foundation of our efforts to cultivate internal strength. The more obvious it is.

So, in 2019, how do we do it?


Firmly fight a long-lasting battle! Especially for the mobile phone business, we have to lose the illusion of the quick victory theory, and we can't allow for a slight misjudgment of the situation, and we can't break the competition one minute at a time. We must look at the long-term vision, set the goals for the 5G era, and actively arrange in advance; we must also be down-to-earth, always be brave and alert in every part of the battlefield, accumulate small wins and win big battles, and meticulously play every battle. Before the arrival of 5G Spring, this will be a long-term battle, and the mobile phone business will always stand firm in the first camp of the world!

In 2019, the most important thing in our mobile phone business is to continue to lay a solid foundation, continue to innovate, quality and deliver, while firmly promoting the multi-brand strategy of mobile phones. The two main brands, Xiaomi and Redmi, will be independent. Xiaomi will focus on the introduction of advanced technology, based on the high-end to the flagship market, and lay out new channels under the new retail line; Redmi will die for the ultimate price/performance ratio and e-commerce market. In addition, our Black Shark, Mito, and POCO brands will be fully utilized on the vertical tracks of game users, female users, and overseas geek users.

The global market for smartphones is still huge, and we still have a lot of room to open up. In 2019, we will focus on developing markets in Western Europe, Eastern Europe, the Commonwealth of Independent States and Latin America, and continue to expand in the international market. In the domestic market, we will continue to deepen our channel capacity and build a new retail system that is omni-channel, full-category and full-scenario.

In the past 8 years, mobile phones have always been our core. Xiaomi has seized the opportunity of the mobile Internet to rise rapidly in the global market. Since 2013, we have hatched the ecological chain with mobile phones as the center. This strategy has achieved remarkable achievements in the past five years and is the world leader in IoT layout.

Today, the arrival of the AI era has given us at least an order of magnitude more than the mobile Internet era.

In the past, people experienced the era of remote control, keyboard era and touch era. Every interaction revolution has deeply influenced a generation and made a group of world-class companies. As AI+ voice interaction becomes more and more routine, using voice to control the lighting switch, even turning on the air conditioner and watching TV are just a matter of words.
It is foreseeable that all the devices in the home will be interconnected in the future, and voices can be used for interaction, which will bring about a round of changes in the scale of smart home devices. And it will establish a platform network of AIOT, which runs through the scenes of people's lives, which are divided into seconds, corners and corners, and aggregates a large number of users, traffic and data.

IoT is the Wisdom of all things, the super Internet, won the AIOT, Xiaomi won the future "hardware + Internet." This is also the historic opportunity for Xiaomi to fulfill his mission - "Let everyone in the world enjoy technology and bring a better life."

So in 2019, we officially launched the "mobile +AIoT" twin engine. This is the core strategy of Xiaomi in the next five years.

What is AIoT? What we are talking about is AI+IoT, artificial intelligence + IoT platform.

I want to tell you that from 2019, for Xiaomi, AIOT is "All in IoT"!

All in IoT, now is the time of action! In the next 5 years from now, we will continue to invest more than 10 billion yuan in the AIOT field!


Eight years after starting a business, Xiaomi started from 13 people to more than 20,000 people, starting from 10 million yuan, and holding more than 40 billion in cash. From mobile phones to today, the "mobile +AIoT" dual-engine strategy was launched. Along the way, no one has ever suffered more cold eyes, ridicule or even slandered than us; no one has experienced more pains than we have experienced in pursuing product extremes; no one is in such a short time, like We create so many business miracles as we do.

Regardless of whether it is winter or summer, regardless of applause or cursing, we always look up and go forward. What is behind us, what is it?

It is the 8 words of "Dream, no fear". This is the essence of the initial heart of the business. From April 6, 2010 to the present, in 3202 days and nights, we have always been like this!

Eight years ago, the mobile phone industry giants stood tall. Internationally, Nokia, Samsung, Apple, which one is not a super behemoth? In China, Huawei, Lenovo, and ZTE, which one is not a big family business? When we said that we would use the Internet to make mobile phones, no one would look at us, but we simply entered the cruel battlefield with bare hands. Are we afraid of it? Are we shrinking? No!

Today, in the face of China’s bloody battles, global journeys, and the historical opportunities of smart homes and AIOT, have we hesitated? Have we hesitated? nor!

So no matter what kind of difficulties are in front of us, we have nothing terrible! Dry, yes!

At the red rice Redmi Note 7 conference yesterday, I said a word: "Life and death are bearish, do not accept it!" I like this sentence, because it is full of blood. This fearlessness is the fire in our hearts! Every millet has a fire in his heart. This group of fires burns and burns for 8 years. The fire in our hearts is wilder than the harsh winter, and more fierce than Blizzard!

The "Mobile + AIoT" dual engine strategy has been officially launched!Classmates, let us step on the new journey of 2019, let the fire that gathers the millet people burn more and more!

Thank you all!

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