China's most valuable and World's second most startup Xiaomi has become a well-known name in the tech market in the recent past. While the company's reputation was sky rocketing, so were the founders hopes. But, according to latest news in the tech world, all isn't merry for the Chinese based gadget maker.
The company sells everything from wearables and smartphones, to TVs, cameras and air purifiers etc. And, the one thing that sets them apart from others is the price point at which they offer these products. For example, one can buy a five-inch smartphone for just $200 and a buy a fitness band for a mere $15. Yes, you read it right.
From the very beginning, the tech company's strategy has been to bombard the market with budget devices. Then, after a huge customer base is generated, it would thread all of its products together into an "ecosystem" almost similar to what Google (GOOGL, Tech30) and Apple (AAPL, Tech30) have done with Android and iOS. Once that's achieved, Xiaomi can then sell the software add-ons and applications to the people. That's how the Chinese gadget maker is raking in most of its profits in today's time.
But, according to the estimated sales figures for last year (2015), all hasn't gone according to the tech company's roadmap.
According to Richard Windsor, an Analyst, Xiaomi might have sold just 72 million devices in the year 2015, which is a much lower figure than what the company had predicted for itself.
Assuming that Windsor's estimate is correct, the Chinese gadget makers sales growth could be less than 10% in the year 2015. This is very less when compared to its 211% growth in a three-month period back in 2014.
While these slow growth figures might not be that much of a problem to the firm, it's surely deemed to affect the tech company's valuation and ability to raise capital to continue developing new services for its hardware, which might end up affecting the company's stand in the market in the longer run.
According to figures made available by CB insights, the China based company is currently valued at $46 billion but Edison Investment Research analysts have a different story to tell. According to them, Xiaomi is worth only $5.9 billion, which js 15% less than of the cited figure.
Founded less than five years ago, the startup has become one of the top two smartphone manufacturers in its home country, dethroning the big names, Samsung and Apple. But, unfortunately, its success rate outside the country has been limited.
Well, if the figures above are any true, Xiaomi is surely looking forward to a tough year ahead.
The company sells everything from wearables and smartphones, to TVs, cameras and air purifiers etc. And, the one thing that sets them apart from others is the price point at which they offer these products. For example, one can buy a five-inch smartphone for just $200 and a buy a fitness band for a mere $15. Yes, you read it right.
From the very beginning, the tech company's strategy has been to bombard the market with budget devices. Then, after a huge customer base is generated, it would thread all of its products together into an "ecosystem" almost similar to what Google (GOOGL, Tech30) and Apple (AAPL, Tech30) have done with Android and iOS. Once that's achieved, Xiaomi can then sell the software add-ons and applications to the people. That's how the Chinese gadget maker is raking in most of its profits in today's time.
But, according to the estimated sales figures for last year (2015), all hasn't gone according to the tech company's roadmap.
According to Richard Windsor, an Analyst, Xiaomi might have sold just 72 million devices in the year 2015, which is a much lower figure than what the company had predicted for itself.
Assuming that Windsor's estimate is correct, the Chinese gadget makers sales growth could be less than 10% in the year 2015. This is very less when compared to its 211% growth in a three-month period back in 2014.
While these slow growth figures might not be that much of a problem to the firm, it's surely deemed to affect the tech company's valuation and ability to raise capital to continue developing new services for its hardware, which might end up affecting the company's stand in the market in the longer run.
According to figures made available by CB insights, the China based company is currently valued at $46 billion but Edison Investment Research analysts have a different story to tell. According to them, Xiaomi is worth only $5.9 billion, which js 15% less than of the cited figure.
Founded less than five years ago, the startup has become one of the top two smartphone manufacturers in its home country, dethroning the big names, Samsung and Apple. But, unfortunately, its success rate outside the country has been limited.
Well, if the figures above are any true, Xiaomi is surely looking forward to a tough year ahead.
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