Xiaomi Corporation (1810.HK)

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#81
(16-12-2014, 11:16 AM)CityFarmer Wrote: A profit of 347.48 million yuan, over a revenue of approx 26.58 billion yuan, that is a profit margin of 1.3%. It shows the competitive of market...

Xiaomi ‘made only S$74m’ in profit last year

Beijing — China’s Xiaomi Technology made a profit of 347.48 million yuan (S$73.6 million) on 26.58 billion yuan in revenue last year, said new Chinese securities filings, showing the razor-thin margins in one of the handset industry’s fastest-growing companies.

The filings also revealed that chairman and chief executive Lei Jun claims 77.8 per cent ownership of the company he co-founded in 2010, while unnamed shareholders split the remaining shares.
...
http://www.todayonline.com/tech/gadgets/...-last-year

You have to put that in the context that Xiaomi has been bleeding Smile Guess the operating leverage helped a lot. Looks like IPO coming very soon Smile

(24-07-2014, 12:29 PM)specuvestor Wrote: Actually the whole handset space is a very interesting study on strategy and consumer behaviors if u follow it closely.

In the past decade we see Motorola subsequently Nokia dictating the markets with form factors ie clamshells and chocolate bars.

OS was simple but effective like the original palm OS. Then came internet and phone makers try to be the internet themselves by copying the i-Mode model... nope it is not by Apple Smile Therein came the WAP idea.

Even up to 2006 I was frustrated why we still couldn't access internet on mobiles with 3G rather than go through restrcited access through the phone makers' primitive OS (much like some "smart" TVs past years). Their answer was no content for WAP and hence no demand for 3G. err.... WAP?? I was talking about HTTP.... Then Blackberry and Nokia offered HTTP on a ridiculously small screen.... because their focus was on form factor.

Then came iPhone. The original iPhone had a few issues but effectively it was a mini-miracle as per my posts in Apple thread. The biggest game changer was a reasonably workable access to internet on the go. It impacted the form factor issue, the OS issue, and the 3G issue.

Suddenly everything changed, except for the incumbent mobile phone makers. Motorola and Nokia continued to maintain their form factors and OS while Samsung started to develop their own OS Bada. Microsoft was interesting case study of how the right strategy ie Microsoft CE could have such lousy execution as they try to do OS and hardware under Balmer. Compare that with Job's execution and integration. HTC aka High Tech Computer originally was the de facto handset for Windows phones, before MS messed up big time.

Then came Google Android and subsequent Chrome. You can see Google is playing a long term game with little profit to show for Android and Chrome. Their strategy is market capture, slowly but surely, and still cooking. End game is for everyone to use their device for internet, either OS, Apps or hardware. They are looking to be the next Microsoft of Internet. Watch this space.

Excluding Google, the rest was history. Both Motorola, Nokia and Blackberry didn't realise their form factors was not condusive to internet. They were mesmerised by their own success and lost the long term plan. They were killed by stagnation and procrastination. It was pretty obvious and not even hindside bias. Whereas Samsung bet on everything as usual... if Android didn't pick up , you can be sure they would be using iOS Smile

Where does Xiaomi fit? In their pursuit for lowest cost, Apple and others went to China, with the Koreans and Japanese later. The difference is that Apple demanded strong engineering skills and quality. The rest was just focusing on cost. Monkey see monkey do without understanding. Why is that important? It breeds an entire ecosystem in handset manufacturing in China which came TCL, Lenovo, Bird, etc and now Xiaomi

Even so AFAIK Xiaomi is losing $ on every handset though they claim turn around, but they have a long term strategy which is heavily dependent on when how long their backers can bleed.

That is also the reason why ODM choose TSMC and UMC for foundry and not SIMC. If we do not learn from history we bound to repeat it. But some CEOs are not good history students, and China has to thank them for it Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
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#82
(16-12-2014, 11:22 AM)specuvestor Wrote:
(16-12-2014, 11:16 AM)CityFarmer Wrote: A profit of 347.48 million yuan, over a revenue of approx 26.58 billion yuan, that is a profit margin of 1.3%. It shows the competitive of market...

Xiaomi ‘made only S$74m’ in profit last year

Beijing — China’s Xiaomi Technology made a profit of 347.48 million yuan (S$73.6 million) on 26.58 billion yuan in revenue last year, said new Chinese securities filings, showing the razor-thin margins in one of the handset industry’s fastest-growing companies.

The filings also revealed that chairman and chief executive Lei Jun claims 77.8 per cent ownership of the company he co-founded in 2010, while unnamed shareholders split the remaining shares.
...
http://www.todayonline.com/tech/gadgets/...-last-year

You have to put that in the context that Xiaomi has been bleeding Smile Guess the operating leverage helped a lot. Looks like IPO coming very soon Smile

Just my two cents. Problem with technology based industry is the rate of obsolescence. Its quite easy to see their success today, but how would Xiaomi be able to retain that advantage in terms of "budget"? Samsung offered low cost phones last time, when Nokia was still the king of the game.

Years later, Samsung's margins kena pressured by Xiaomi and other budget phone manufacturers. Xiaomi looks like the new bright kid in the block, yet its also worrying like how could they retain their competitive advantages for long term (rather than short term)?

What if someone else does the game better than Xiaomi? Unfortunately, low cost may not lead to consumer brand loyalty, unless there is some outstanding differentiating factor.

At the same time, Xiaomi is outstanding for being able to enter a market dominated by "giants". Samsung was so formiable for a period of time and Sony is like a mere shadow of its impressive past. Interestingly, Apple remains like an ageing (or, to some, ageless) dame which is still eternally "alluring" to the many.

Still, i rather buy the phone and tv, instead of the stock. Big Grin
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.

When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.

The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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#83
(16-12-2014, 04:27 PM)vesfreq Wrote:
(16-12-2014, 11:22 AM)specuvestor Wrote:
(16-12-2014, 11:16 AM)CityFarmer Wrote: A profit of 347.48 million yuan, over a revenue of approx 26.58 billion yuan, that is a profit margin of 1.3%. It shows the competitive of market...

Xiaomi ‘made only S$74m’ in profit last year

Beijing — China’s Xiaomi Technology made a profit of 347.48 million yuan (S$73.6 million) on 26.58 billion yuan in revenue last year, said new Chinese securities filings, showing the razor-thin margins in one of the handset industry’s fastest-growing companies.

The filings also revealed that chairman and chief executive Lei Jun claims 77.8 per cent ownership of the company he co-founded in 2010, while unnamed shareholders split the remaining shares.
...
http://www.todayonline.com/tech/gadgets/...-last-year

You have to put that in the context that Xiaomi has been bleeding Smile Guess the operating leverage helped a lot. Looks like IPO coming very soon Smile

Just my two cents. Problem with technology based industry is the rate of obsolescence. Its quite easy to see their success today, but how would Xiaomi be able to retain that advantage in terms of "budget"? Samsung offered low cost phones last time, when Nokia was still the king of the game.

Years later, Samsung's margins kena pressured by Xiaomi and other budget phone manufacturers. Xiaomi looks like the new bright kid in the block, yet its also worrying like how could they retain their competitive advantages for long term (rather than short term)?

What if someone else does the game better than Xiaomi? Unfortunately, low cost may not lead to consumer brand loyalty, unless there is some outstanding differentiating factor.

At the same time, Xiaomi is outstanding for being able to enter a market dominated by "giants". Samsung was so formiable for a period of time and Sony is like a mere shadow of its impressive past. Interestingly, Apple remains like an ageing (or, to some, ageless) dame which is still eternally "alluring" to the many.

Still, i rather buy the phone and tv, instead of the stock. Big Grin

http://www.valuebuddies.com/thread-4371-...l#pid99318

The business model of Xiaomi, as stated by Hugo Barra, Xiaomi's vice president for global operations.

"We are an Internet and a software company much more than a hardware company"

The focus should be "killer app", rather than the phone. Don't ask me what is the "killer app", I also don't know...Big Grin
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#84
Xiaomi raising over US$1b from investors including GIC: Source

SINGAPORE/SHANGHAI — China's Xiaomi is raising over US$1 billion from investors including Singapore sovereign wealth fund GIC that would value the smartphone maker at over US$45 billion, a person familiar with the deal said.

The fund raising was first reported by the Wall Street Journal, which also said this round was led by tech fund All-Stars Investment and included Russian tech fund DST Global and Yunfeng Capital, a private-equity firm affiliated with Alibaba Group Holding Ltd Executive Chairman Jack Ma. All-Stars Investment is led by former Morgan Stanley analyst Richard Ji.

GIC's investment in Xiaomi comes after Singapore state investor Temasek Holdings Pte Ltd bought a small stake in the smartphone maker during an earlier funding exercise, a second person said.

The people were not authorised to speak to media on the matter and so declined to be identified. Xiaomi and GIC declined to comment. Ji could not be reached for comment.
...
http://www.todayonline.com/singapore/xia...gic-source
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#85
Xiaomi's first notebook looks just like a MacBook Air
Source: hardwarezone.com.sg

Xiaomi's first notebook
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#86
(07-11-2014, 03:04 PM)CityFarmer Wrote: A good article on Xioami business model, that worth a read...

Xiaomi's killer app? Its business model

BERLIN (Nov 7): Xiaomi Corp, the private company that sells the most smartphones in China, had been shrouded in mystery: It wasn't clear how it could make money by selling top-of-the-line products at rock-bottom prices. Xiaomi has revealed its 2013 financials, and they show a handsome profit, which means smartphones from Apple, Samsung and even LG and HTC may be grossly overpriced.

Xiaomi's flagship phone, the Mi4, sells for a minimum of US$327. Its specifications are largely the same as, say, the Samsung Galaxy S5, which costs at least US$150 more. The Chinese maker doesn't skimp on component quality to drive down the price: It uses the same Sony battery and optical sensors, Qualcomm processor, Wi-Fi and audio chip, Samsung RAM chip and parts as other premium smartphones.

Xiaomi phones don't look or feel cheap, though their design is minimalistic. The Mi interface, with its highly intuitive, native-feeling and iOS-like Android flavour, is an improvement on Google's version of the operating system and doesn't suffer from the bloatware inflicted on users by other phone manufacturers.

I like the part "doesn't suffer from bloatware". Big Grin Otherwise, Nexus is quite bloat free. Angry
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.

When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.

The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
Reply
#87
Xiaomi is very agressive, will become Agressivemi.
Xiaomi unveils premium Mi Note and Mi Note Pro phablets
Xiaomi mocks Apple with its very own premium phablet
Hands-on: Xiaomi Mi Note
The only way to avoid making mistakes is not to do anything. And that … will be the ultimate mistake. - Goh Keng Swee
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤,用健康換取身外之物。 ^ 人生无常,珍惜当下。 ^ 放弃固执,适时变通。 ^ 前面是绝路,希望在转角。

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#88
Xiaomi Mi Note Vs Apple iPhone 6 Plus: A closer look

http://www.hardwarezone.com.sg/feature-x...loser-look
The only way to avoid making mistakes is not to do anything. And that … will be the ultimate mistake. - Goh Keng Swee
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤,用健康換取身外之物。 ^ 人生无常,珍惜当下。 ^ 放弃固执,适时变通。 ^ 前面是绝路,希望在转角。

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#89
What an interesting partnership, between Xiaomi, and Uber...Big Grin

Xiaomi partners with Uber to deliver new flagship phone

SINGAPORE — Chinese phone maker Xiaomi, popular for its value-for-money smartphones, is going upmarket with the launch of its most expensive phone, the Mi Note, which is more than two times costlier than the company’s next priciest offering.

Xiaomi will distribute the new phone in style, as it is, for the first time, collaborating with car-sharing and taxi-booking company Uber to deliver the phones to some customers in Uber’s cars.
...
http://www.todayonline.com/tech/xiaomi-p...ship-phone
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#90
Xiaomi and Foxconn set up Make in India with Redmi 2 Prime for Rs 6,999
Xiaomi becomes the first Chinese brand to set up its manufacturing shop in the country with able assistance from Foxconn and they have chosen Andhra Pradesh as their first stop. The plant located in Vishakhapatnam (or Vizag) will be entrusted with making phones locally for the consumers, thereby shedding away their flash model online sales in the near future.

Kicking off proceedings, Xiaomi will be manufacturing Redmi 2 Prime smartphone initially with other models expected to be part of the set up in the coming months. The announcement was made with Hugo Barra, vice president - Global at Xiaomi, Manu Kumar Jain, general manager at Xiaomi India and Chandrababu Naidu, chief minister of Andhra Pradesh in the backdrop.

Redmi 2 Prime is the upgraded version of Redmi 2 with bumped up storage and higher memory count as well, rest remains the same. Foxconn has been actively hunting for partners in India and their objective to set up plants in every state of the country epitomises the current regime's dream to get India on the manufacturing roadmap much akin to how its global counterparts these days.

Redmi 2 Prime sports a 4.7-inch HD display, powered by quad-core Snapdragon 410 CPU with 2GB RAM and packs 8MP (back) and 2MP (front) cameras with 4G LTE support and dual-SIM slot. The phone will be available in the coming days.

Andhra Pradesh is one of the few states in the country to have opened itself to the prospect of luring more and more IT companies and bringing Xiaomi with Foxconn is another big step to its promise.
The only way to avoid making mistakes is not to do anything. And that … will be the ultimate mistake. - Goh Keng Swee
A pessimist complains about the wind; an optimist expects it to change; the realist adjusts the sails. - W. A. Ward
Learn from the mistakes of others. You won't live long enough to make them all yourself. - Jane Bryant Quinn
人生最大錯誤,用健康換取身外之物。 ^ 人生无常,珍惜当下。 ^ 放弃固执,适时变通。 ^ 前面是绝路,希望在转角。

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