Currently at $19 KH and peaks of $19.34 HKD, things are starting to look a bit brighter. Xiaomi is the biggest tech IPO in the last four years since Alibaba went public. Before it went public, it was estimated that Xiaomi could n be valued as much as $100 billion at launch but rather negative Q1 2018 results affected the IPO value.
Xiaomi is an eight year old company and managed to grow to be one of the largest phone manufactures in the world, especially in native China and India. The company has 70 percent revenue stream from phones, 20 percent from IoT and Lifestyle devices and 10 percent on services. It's called the Apple of the east and in the last few years, Xiaomi managed to launch a lot of unique products including phones ranging from $100 entry level decent phone to $500ish for the high end.
The company sold out millions of the latest generation Xiaomi Mi8 and affordable Mi8 SE phones and it has also managed to ship them outside of China and India. In early 2018 the firm launched two new retail stores in France and Italy announcing the slow progression toward European consumers. The Etail and Retail market in Europe already embraced Xiaomi as an important player and Hutchinson, 3 network in a few European countries will soon start carrying Xiaomi phones too.
Not only has it 19,000 employees, mostly in China, it also has a large retail store chain and an even larger Ecomerce presence in China and India.
The magic formula for Xiaomi is that the phone doesn’t cost a fortune and it has a decent phone for 100 ish, 200 – 300 Euro mainstream and high end around 500 Euro. The Samsung S9 started at close to 900 Euro at launch and the iPhone X was 1100 Euro for the cheapest one. We are not saying that Xiaomi Mi 8 is better than the Samsung and Apple flagships, but in most parts they come really close, at significantly less money.
Launching a pure Android 200 Euro Xiaomi Mi A1 phone last year and following up with A2 this year, is definitely something that European and USA consumers really like.
Things started well for the phone giant from China and the outlook is really good.