The rise of Xiaomi the Chinese market has been explosive, but new evidence suggests that the results do not look so happy for the company.
A new report by Wall Street Journal points out that after refusing to meet investors’ expectations for 2015, confidence in the manufacturer’s future is very ephemeral.
It is known that Xiaomi was originally set the bar at 80 million smartphones sold, but something went wrong. In addition, the valuation of the company at $ 46 billion has been called into question, as the figure, according to the WSJ “It was based on a still unrealized plans”.
Xiaomi’s business model has been extremely successful, and many users have appreciated the company’s products. In addition, Xiaomi managed to hold fast the sale of new devices, which created an incredible buzz.
According xiaomi company spokesperson, “competition in the Chinese smartphone market is extremely intensified this year”.
Press seretar is unable to comment on matters relating to the above assessment or failure to forecast sales. Instead, he said that sales of the device were “within expectations”.
According to Peter Furman, chairman of the investment bank China First Capital, problems preventing Xiaomi success include increasing competition from Huawei and other domestic Chinese producers and the lack of its own processor as the Samsung and Huawei.
The solution to the second problem, of course, would have helped the company to reduce its dependence on other manufacturers and reduce the cost of the final device.