Xiaomi, the world's third largest smartphone company, might be worth $40 billion USD

Discussion in 'Alternatives to iOS and iOS Devices' started by EbookReader, Nov 1, 2014.

  1. EbookReader macrumors 65816

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    #1
    http://www.forbes.com/sites/ryanmac...ecome-worlds-most-valuable-private-tech-firm/

    Not bad for a start-up that sold its first smartphone 3 years ago.
     
  2. Savor Suspended

    Savor

    Joined:
    Jun 18, 2010
    #2
    Not bad for a 4-year old. This young dragon is one of the richest kids in the industry...

    The many downfalls of several companies like HTC, Sony, and Motorola is really because of the FALLING smartphone prices offered from the RISING Chinese brands.

    It is a price-driven market. Always has been. I don't think iPhones would ever sell well if they weren't heavily discounted with contracts or people would have paid attention to Nexus, Moto G, or OnePlus One if it wasn't because of price. In a few short years, names like Xiaomi, Huawei, Lenovo, Meizu, and Oppo/OnePlus will start replacing names like LG, HTC, Sony, and Motorola as the changing of the guard. Throw in Asus from Taiwan as another torch bearer for HTC. Samsung's current loss in profits is greatly affected by this Chinese invasion. Once these Chinese brands start spawning all across the globe, Samsung's quarterly reports will get worse. There is no more point of overpaying for your phones or brand loyalty in a fickle and volatile industry .

    First stop - Homeland China

    Next stop - The rest of the world
     
  3. Jibbajabba macrumors 65816

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    #3
    Indeed. Now what companies like OPO need are a decent infrastructure to be able to produce and sell globally better / more. Although having said that, that would probably bring the price up.
     
  4. spriter macrumors 65816

    spriter

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    #4
    Exactly. To get a global reach and take market share needs a lot of cash, especially marketing.

    Direct sales are ok for tech geeks but the average consumer will seek less risk and want guarantees and a local point of return.

    And that's gonna jack prices up.

    The current pricing strategy employed by these Chinese startups is to sell at cost for market penetration. Medium- and long- term requires self-sufficiency not investors pockets.

    Xiaomi is in a good position valuation-wise because of their rising presence in the huge Chinese market, as well as their push into India. Even narrow margins would be decent given how many people they could reach. That's s lot of data and information that will be worth a lot of business.
     
  5. danthe93 macrumors member

    danthe93

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    Oct 31, 2014
    #5
    Do note that China is a MASSIVE market, and secondly, their devices are cheap, which explains why they sell a lot. They make their profits on volume rather than extra high markup.
     
  6. srkmish macrumors regular

    srkmish

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    Feb 10, 2013
    #6
    Here in india, People have become crazy about Xiaomi phones. It is available through only one online retailer - Flipkart and you have to do prior registration. Even then there is no gaurantee that you will get the phone cuz it sells out within seconds :p . People have cashed in on this by selling it at a higher than MRP Price on ebay. :D
     
  7. AustinIllini macrumors demi-god

    AustinIllini

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    Austin, TX
    #7
    You're right, but remember Motorola is Lenovo now. I expect Lenovo phones to get better (but never sell here, as Motorola will be their North American phone division) and I expect Motorola to still go strong.

    HTC, Samsung are in big trouble.
     
  8. EbookReader thread starter macrumors 65816

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    #8
    If the $40 billion valuation is accurate, it's easy to see why OPPO started OnePlus.

    OnePlus just need to increase production.
     
  9. EbookReader thread starter macrumors 65816

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    #9
    http://www.fiercewireless.com/story...-40-50b-it-vaults-smartphone-ranks/2014-11-04

    Report: China's Xiaomi valued at $40-$50B as it vaults up smartphone ranks
    November 4, 2014 | By Phil Goldstein

    Chinese smartphone maker Xiaomi is holding talks on a funding round that would value the company at around $40 billion to $50 billion, according to a Bloomberg report, the latest sign of the firm's rapid ascendance in the smartphone market.
     
  10. EbookReader, Nov 7, 2014
    Last edited: Nov 7, 2014

    EbookReader thread starter macrumors 65816

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    #10
    http://www.bloombergview.com/articles/2014-11-06/xiaomi-s-killer-app-its-business-model
    Xiaomi's Killer App? Its Business Model


    Selling smartphone at near break-even result in $566 million profits in 2013 for Xiaomi.

    http://online.wsj.com/articles/smartphone-maker-xiaomis-2013-profit-nearly-doubled-1415195999

     
  11. EbookReader thread starter macrumors 65816

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    #11

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