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Business
Xiaomi partners up with Jinjia Group to venture into e-cigarettes
CKN
2019/02/12 05:46:54
2,323
China's News, China's Financial News, Xiaomi

Feb 12, 2019 (China Knowledge) - Chinese smartphone manufacturer Xiaomi has partnered up with a domestic cigarette manufacturer, Jinjia Group to produce electronic cigarettes as it looks towards new product avenues to stem a slowdown in smartphone sales.

In a statement by Jinjia at the end of last month, the company announced that it was entered a joint venture with Xiaomi named Shenzhen Yinwei Technology which will be focusing on designing new tobacco products such as e-cigarettes and other electronic smoking systems which they hope to introduce to the market this year.

Jinjia did not disclose how much each firm had invested into the joint venture and sources indicate that the joint venture will run independently and its products may not be sold alongside Xiaomi products in Xiaomi stores.

Last quarter, Xiaomi smartphone shipments fell by more than 30% and the company is venturing into new business areas for new growth avenues such as home appliances. The company already manufactures a range of small home devices that can be controlled via its Mi Home app and is hoping to expand its current offerings.

Sales of Xiaomi smartphones are expected to continue to slowdown this year as rivals such as Huawei introduce new products and Apple is expected to slash phone prices to be more competitive.

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