Xiaomi saw its smartphone sales sink in 2016 due in part to its ramped-up competition with Huawei and BBK. But the company has seen remarkable international growth—it sold 2 million devices in India in fall 2016—and hopes its sleek new Mi Mix and Mi Note 2 smartphones will reignite sales in China. Xiaomi is also working to upend the narrow perception of its brand: The company’s wide-ranging hardware offerings include everything from headphones and fitness bands to tablets and power strips and water purifiers. In 2016 alone, it introduced its first laptop, a set-top box, a robot vacuum, a smart rice cooker, a $29 VR headset, a quadcopter drone, and its MiJia electric scooter, among a slew of other ventures.
Xiaomi aims to become an internet of things powerhouse through its investments, so far, in 77 companies, which can tap into Xiaomi’s resources, supply chain, and growing retail presence online and off (Xiaomi opened three-dozen brick-and-mortar stores this year, with hundreds more in the pipeline) to scale up faster. The company believe this portfolio approach—which doesn’t involve hiring engineers to build all these products—will create an ecosystem of devices and services with recurring revenue streams.