Industry experts are warning that Xiaomi Corp's current rate of expansion into drones, robotics, virtual-reality devices, and smart-home related products might not be enough to make up for falling revenues from declining smartphone sales.

The company's founder and CEO Lei Jun hosted a live-streaming event on Wednesday evening to launch its latest product, the Mi Drone, its first drone. The model, equipped with a 4K ultra-HD camera, is priced at 2,999 yuan ($458).

Lei also revealed his firm is developing its own robot and VR devices, with launches earmarked for sometime in August or September, and that its smart band and bracelet, the Mi Band2, will be launched on June 7.