Xiaomi: some forecasts worry investors

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A news brought investors to Xiaomi to have doubts about the company's growing business. In fact, Wall Street Journal reported that the company of Lei Jun would have disregarded the forecasts of sale of 80 millions of devices in 2015, an ambitious goal that, at first, was even set to 100 million of devices.

Moreover, also because of the current crisis in the Chinese markets, even the valuation of around has been questioned 46 billion of dollars of the same company, due to some limitations found in producing significant revenue through its online services, which continue to not collect the success and above all the expected earnings.

Also to be underlined the fact that, if in the first years of the company's activity, the terminals Xiaomi, literally snapped up in the first days of launch, now sales are less rapid and products for sale are easily available, unfortunately, apparently sold out are a memory.

The company's spokesperson replied, speaking only of increasingly fierce competition on the Chinese mobile market, but the reasons were not just attributable to an increase in competitors.

Xiaomi Lei Jun

Four would be in particular the difficulties that would be going through Xiaomi:

  • The increasingly fierce competition from other furniture giants, such as Huawei that, contrary to Xiaomi, has passed the wall of 100 million smartphones sold, also being able to count on international markets;
  • L'absence of a proprietary SoC, when instead Samsung and Huawei they can easily bet on them Exynos e Kirin;
  • The general decline in the average price of smartphones, which prevented strong gains;
  • Un basin of limited use, in fact, according to Peter Fuhrman, President of China First Capital and finance expert, in China, the typical buyer of Xiaomi he is a man and belongs to the age group between 18 and 30 years. A limited target naturally reduces sales opportunities.

Xiaomi, usually, is presented as a winning Chinese colossus and strong growth, these news certainly change the face of the company, we just have to wait for the reactions of managers Xiaomi to raise the company's fortunes.