Xiaomi has been under the spotlight since its IPO. Shares prices have had some interesting level changes. Find out more about the Chinese giant’s current state of affairs.
Xiaomi recently grabbed the headlines due to its somewhat underwhelming IPO on the 9 July. Share prices were thought to have a very high valuation with the price-to-earnings ratio immediately drawing a familiar comparison to Apple. Despite the (unsurprising) slow start, the IPO was hailed as the biggest and most significant for a Chinese tech company. The IPO raised $4.7 billion, at a valuation of about $54 billion.
What is Xiaomi and what’s its story?
Xiaomi first emerged as a value-priced smartphone manufacturer from Beijing. It was founded in 2010 by the serial entrepreneur and angel investor Lei Jun, who currently serves as both the chairman and CEO of the “Apple of China”.
Their smartphone product range has more recently expanded to several lines, including a successful foray into a more premium product – Mi Mix Series. This smartphone series was the first to boast an edge-to-edge display. It wasn’t long before their sleek product design and charismatic leadership drew comparisons – by both analyst and consumers – with the Cupertino based company.
Where are they headed?
Xiaomi’s CEO, Lei Jun has expressed his dislike of the comparison with Apple, stating they want to be like Costco. The ever-expanding product line seems to be in accordance with the company’s intention. No longer limited to “just” smartphones, it currently offers a wide range of electronic gadgets and appliances such as: tablets, smart bands, appliances, air purifiers, speakers, smart TVs, and even electric scooters.