Huami Corporation, which predominantly makes smart wearable devices, has extended its partnership with Xiaomi for three more years. An extension of a strategic partnership agreement means the company will continue to develop Smart wearables for Xiaomi at least until 2023.
The latest move, as reported by PR Newswire, can be found on the company’s website containing official news & releases. Also, the news clearly states an extension of 3-years for the Strategic cooperation agreement with Xiaomi. We all know that Huami is a public company and a prime-partner of Xiaomi. The latter backs the former to strengthen its broad ecosystem and be in the mix. The company also makes Xiaomi’s smart products like Smart bands.
Besides, with the new extension of the agreement, Huami will continue to get the most-preferred-partner status from Xiaomi. Now, in business terms, this means Huami gets to be a star vendor of making Xiaomi’s wearable products for the next three years. Also, under the agreement, the two parties will work on the R&D of AI-chips and algorithms of wearable devices. That said, the new announcement comes almost two months after the change of CFO at Huami. Mr. Leon Cheng Deng is the new CFO of Huami, effective October 1, 2020, and replaces Mr. David Cui who left for personal reasons.
Coming back, Huami has reportedly shipped 42.3 million units of smart wearable devices in 2019 globally. Out of this, products manufactured for Xiaomi alone accounts for nearly 26% of shipments. While early reports from the company repudiated an exclusive deal with Xiaomi, the records from last year would have given a clear picture of how important both are for each other. Headquartered in Hefei, China, the company has never considered Xiaomi as a rival for its own products.
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