At a lower valuation, is Xiaomi a bargain, or just an another overhyped hardware company?Xiaomi was founded by Lei Jun and a small group of engineers and designers with the goal of making high-quality smartphones for under $300; "Amazing products at honest prices" is the company's slogan. So investors shouldn't confuse the 5% hardware margin with the overall company margin; the internet services segment generates a huge gross margin of over 60%, and it's growing as a percentage of revenue.The combination of smartphones, ancillary hardware, and internet services is what management calls its "triathlon" business model.Xiaomi has the fourth-highest market share both globally and in China. However, if Xiaomi had gone public in late 2014, its stock could have plunged due to its slowing sales and high valuation. © 2020 GlobalCapital is part of the Euromoney Institutional Investor PLC group,Covid known unknowns, ESG vs. S&P, Suganomics,Stripy bond market will offer no camouflage,RBC looks for another lift after 10 year build,BOC lays blue foundation; now others should follow,Singapore: a case study for Libor transition,China’s take-privates: no panacea for Asia’s loan market,Asia’s answer to green bond push lies in China property,Modern Slavery Act Transparency Statement.
Market volatility due to noise around the US-China trade war also did not help.But the naysayers should take a cue from its 15% rally on the second day. While the smartphone giant initially hoped to raise $10 billion at a $100 billion valuation, it now looks as if it will have to settle for a $6 billion raise at a valuation range of $54 billion to $70 billion.That's quite a huge gap, and says a lot about this unique company. Apple’s market value touched a whopping $2 trillion and it is now the most valuable publicly traded company in the world. See you at the top!I love looking at the "story" behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names.Cumulative Growth of a $10,000 Investment in Stock Advisor,Xiaomi IPO: What Investors Need to Know @themotleyfool #stocks $AAPL,Roku and NBCUniversal Reach 11th-Hour Distribution Agreement,Judge Blocks Trump Ban on WeChat Over First Amendment Issues,3 Reasons Facebook's Oculus Quest 2 Will Expand Its VR Market,AMD's Rapid Growth in This Market Is Here to Stay,Copyright, Trademark and Patent Information. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.https://online.barrons.com/articles/xiaomi-the-money-1416962575.It has doubled sales for each of the past three years, and is expected to grow earnings by 75% this year. But don’t fret: A number of Xiaomi’s suppliers have publicly-traded shares, and buying these is a way for investors to ride Xiaomi’s ascendance. ",Initially, Xiaomi will only be traded in Hong Kong; it's unclear whether there will be,Despite some questionable corporate governance, I think Xiaomi's story is still compelling. Ed_wilcher likes this. 1 spot in the world’s biggest smartphone market. Is ONEPLUS a publicly traded company? The full v.Xiaomi Technology: Smartphones, Devices and Services ...© 2020 Knight Sac Media. Stock analysis for Xiaomi Corp (XIAOMZ) including stock price, stock chart, company news, key statistics, fundamentals and company profile. And by virtue of the dual-class share structure, he will control over half the voting rights.Also eyebrow-raising was the fact that in early 2018, Xiaomi's board awarded Lei $1.5 billion in stock. But IPO-hopefuls should be thanking Xiaomi for paving the way.All material subject to strictly enforced copyright laws. Revenue figures are in yuan.The margin expansion is likely due to the increased proportion of services revenue, which Xiaomi has impressively grown as a percentage of its business over the past two years:Data source: Xiaomi stock-exchange filings.The fates of most young companies (if Xiaomi can be called one) are largely determined by a young founder or management team, for good or ill.Make no mistake, co-founder Lei Jun will control this company. Sign us up. A Chinese Mobile Brand Rattles the Globe Smartphone Maker Xiaomi Tries to Replic,How Upstart Xiaomi Rattled China's Smartphone Race Low-Price Device Maker Un,Hi, This is such a great information. Drooling yet?Alas, there’s a catch: Xiaomi, China’s biggest smartphone maker, is not yet publicly-listed. The two companies did not respond to a request for comment.Smartphone brands such as Oppo and Xiaomi Corp indirectly rely on Arm as purchasers of chips based on its designs made by Qualcomm and MediaTek. For the best Barrons.com experience, please update to a modern browser. See,Technology, Media & Telecom - Private Equity.
Not only did Xiaomi increase its Chinese market share from 8.9% to 12.4%, but the company also became the No.
The company also had an operating margin of just 1.8% in 2013.
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