According to foreign media reports, Xiao Jun, the co-founder and CEO of Chinese smart phone and consumer electronics manufacturer Lei Jun, said in an interview with Hong Kong Media that he agrees with the idea of 'don' tbe greedy' and hopes to write it. company policy.
'We must curb the tendency of greed and win the consumer's absolute trust,' Lei Jun said. 'So we are thinking about it now, I think we may write 'not greedy' in the articles of incorporation. We will not permanently make profits for the hardware business. Beyond a specific percentage point. Our goal is this one or two percentage points. We hope that all consumers will be able to purchase our products without hesitation,' he said.
For consumers, this may be good news. Lei Jun said that Xiaomi’s products are generally up to 50% lower in price than competitors’ quality products. Is the profit rate of Xiaomi’s hardware business too low? It will lead potential investors to not participate in the company's much-anticipated initial public offering (IPO). Lei Jun’s answer is: Xiaomi will make profits through high-profit, paid Internet services.
Kiranjeet Kaur, a senior analyst at market research firm IDC in Singapore, said: 'Millet regards hardware as a way to achieve his goal. Xiaomi's goal is to become an Internet company and make money through services. However, at present, the hardware is making money. Maintaining survival may be critical, and it is important to survive in this environment before the ecosystem begins to profit.
According to sources, Xiaomi is currently preparing for an initial public offering (IPO) on the Hong Kong Stock Exchange in the second half of this year. Xiaomi's initial public offering may be the largest public offering of technology companies in 2018. Lei Jun did not discuss this in an interview. Leave a comment.
Lei Jun said that in the next few years, as the company’s consumer electronics product categories continue to increase, the proportion of smartphone revenues to total revenue will gradually decrease. According to the latest statistics, Xiaomi has passed more than 100 investment partners, Introduced more than 300 different products including Charging Po, Air Purifier, etc.
Millet was founded in 2010 and was the world’s most highly valued start-up company. It had a valuation of more than US$46 billion at the end of 2014. Statistics from market research firm Canalys show that in the Indian market, the second largest smartphone market in the world, Xiaomi last year In the fourth quarter, smart phone shipments reached 8.2 million units, which accounted for 27% of the market. Xiaomi ended the six-year rule of Samsung Electronics' smartphone market in India and became the new market leader.
Market research company Gartner analyst CK-Lu (CKLu) said, 'The reason why Xiaomi builds Internet services is because the company's puerile-bigger sales model is too risky. If Xiaomi's one or two products fail, or the supply chain appears Question, Xiaomi will soon be in trouble. It is like the problem the company encountered two years ago. '
After Xiaomi lost its leading position in the Chinese smartphone market in 2016, Lei Jun has set an ambitious goal for the company to regain its position as the leading Chinese smartphone market in 10 quarters. As of October 2017, Xiaomi’s year Revenue has exceeded RMB 100 billion (approximately USD 15.9 billion) in advance.
Xiaomi has promised to continue to expand overseas markets. 'I want to achieve the goal is that when consumers buy products can close their eyes to buy. Millet's product quality is absolutely good, the price is absolutely cheap,' Lei Jun said.