It looks a bit strange but the expectations that Xiaomi's investors had for 2015 were not respected. In particular, the achievement of the 80 million smartphones sold. From a recent Wall Street Journal report we learn that this is just the last of the events that have undermined investor confidence in leadership despite being still the second most important start-up in economic terms.
The problems that have led to this decline in trust can be summarized in a few simple points:
- The average revenue from each sale is well below the competition;
- While focusing on a strategy to sell more devices while sacrificing revenues, the slowdown in the Chinese economy, coupled with lowering the costs of competing smartphones, removed the core market share from Xiaomi.
- The lack of SoC owners that would further lower the costs of developing a smartphone in the long run.
To these we would like to add a serious lack in the high sector of the market with the various delays in the presentation of the Xiaomi Mi5. The latest top of the Xiaomi range in fact dates back to 17 months ago.
Leadership always gave the impression of having control over the situation and not fearing the competition at all. A first answer was given with it Xiaomi Redmire 3, a smartphone that has re-launched the appeal to those who were now facing competition for its next smartphone.
What do you think about it? How did something crack in Xiaomi's up to now perfect mechanism?
via | Xiaomi Fans Italia
