Today I’d like to share a recent article that I recently came across thenextweb.com. Its an article by Matthew Hughes which talks about how Xiaomi became a $100 billion phone brand without wooing the West. However, all of the following information is unofficial and speculations from unconfirmed sources.
Here’s a summarised version of the article in the following point forms!
This will be the first time the company has sold its shares to the public — retail and institutional investors alike. The company is potentially aiming for a mammoth $100 billion valuation, which would eclipse other recent tech IPOs, like Twitter and Snapchat, by a considerable margin.
Xiaomi has reportedly roped in Credit Suisse, Deutsche Bank, Morgan Stanley, and Goldman Sachs to help. According to Bloomberg, Xiaomi is also looking to tap Chinese financial institutions and is yet to decide when and where the IPO will take place.
Buying a Xiaomi Phone in US & UK can be quite difficult and most telcos providers do not sell it. The only way to purchase a Xiaomi phone is to go through an intermediary. Sales from GearBest, BangGood, 3rd Party Amazon and eBay sellers have reported high demand for Xiaomi Phones.
Xiaomi is currently the 2nd largest smartphone manufacturer after Samsung. In the 3rd quarter of 2017, the company shipped 9.2 million smartphones, with the most popular phone being the Redmi Note 4. That was roughly 23.5% of the 39 million phones sold that quarter.
It is difficult for Western brands to become the top five in countries like India & China because most of the Chinese Brands dominate these markets (like Huawei, OPPO, Vivo and Lenovo)
Xiaomi aims to develop its brand presence in high-growth developing markets instead of saturated markets to compete with competitors such as Apple and Samsung. Xiaomi is also cautiously entering other developing middle-income nations. In 2017, the Mi A1 phone was launched in 40 markets, including Indonesia, Mexico and Russia.
What do you guys think of Xiaomi’s IPO?