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

[EbookReader]

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

Sources did not say if Xiaomi had already begun discussions with potential investors for a new round of funding, though they did say that the company had turned down previous offers for funding at a valuation of about $30 billion.

Xiaomi reported sales in the first half of 2014 to be about $5.31 billion–up about 150% from last year—and those inside the company expect revenue to be more than $11 billion for the whole year. At a potential valuation of $40 billion, Xiaomi, which does not discuss profits but is reported to be profitable, would be trading at a little under four times projected 2014 revenues.

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

 

[Savor]

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

 

[Jibbajabba]

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

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.

 

[spriter]

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.

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.

 

[danthe93]

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.

 

[srkmish]

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 . People have cashed in on this by selling it at a higher than MRP Price on ebay.

 

[AustinIllini]

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

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.

 

[EbookReader]

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

OnePlus just need to increase production.

 

[EbookReader]

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.

 

[EbookReader]

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

Now a confidential document viewed by The Wall Street Journal shows that Xiaomi’s net profit nearly doubled last year, making it a lucrative business in an industry where most players selling cheap handsets struggle to break even.

Xiaomi, which a few months ago surpassed Samsung Electronics Co. as the biggest smartphone vendor in China by shipments, presented the document to banks in its recent pitch to raise $1 billion in loans for overseas expansion or acquisition.

A table in the document showed that Xiaomi’s net profit last year rose 84% to 3.46 billion yuan ($566 million) from 1.88 billion yuan in 2012. Its revenue more than doubled to 27 billion yuan. Another table included a forecast of a 75% net profit increase this year.

 

[EbookReader]

http://www.forbes.com/sites/russell...ive-month-low-as-xiaomi-accelerates-in-china/

Lenovo Shares Dive To Four-Month Low As Xiaomi Accelerates In China

Xiaomi’s chairman Lei Jun ranked No. 8 on the 2014 Forbes China Rich List published last week with a fortune worth $9.1 billion. Lenovo’s chairman Yang Yuanqing ranked No. 179 with a fortune of $1.15 billion.