Xiaomi global vp Hugo Barra said: “We could sell 10 billion smartphones and we wouldn’t make a single dime in profits. Basically, we’re giving them to you without making any money... we care about the recurring revenue streams over many years”.

This is a novelty given that many smartphone makers are very worried about declining smartphone sales, but Xiaomi makes its money from connected home devices and its software ecosystem.

Smartphone sales are not a financial imperative as with most companies, Barra said.

Xiaomi’s vp Liu De said in April that the company expected sales of smart home devices to double to $1.5 billion this year.