Smartphone Sales Maintained Strength While smartphones saw lower revenue growth in 2019, its sales improved a much higher 22.8% in fourth quarter. This is due to the strong growth in Q4 shipments. Xiaomi has traditionally been known for its low cost, with high value for money handsets. Recognising the need for stronger branding, Xiaomi spin-off its Redmi brand into an independent line that focused on competitive phones with good price-performance ratio. The Xiaomi brand shifted gear towards the high-end, premium models. The strategy seems to be working. Average selling price increased 2.2% year-on-year and gross margin increased to 7.2% from 6.2% in 2018. Xiaomi has established a foothold in the premium market with its Mi 9 flagship model. The recently-launched premium Mi 10 model which is 5G-compatible, has received overwhelming response exceeding internal shipment target.