Before, China's mobile phone and television maker millet, the company, has put forward a listing application to the Hongkong stock exchange, and is currently in the process of close communication with institutional investors. Recently, the US authoritative media reported that Xiaomi has lowered the valuation of the company to $80 billion to $90 billion.
According to foreign media analysis, two reasons may lead to lower valuation of millet, including the company's own positioning and business status is not consistent, over optimistic.
Before, Bloomberg and other multimedia reports, millet company listed in the process of looking forward to the valuation is $100 billion. However, the Wall Street journal points out that Xiaomi has lowered its valuation.
It is reported that if smooth, millet shares may be listed on the HKEx in May or June, many of the early employees of millet will become rich.
The fortune website analyzed the reasons why millet was undervalued. There are two reasons for it:
Fortune website pointed out that the company has been criticized by the outside world for its own $100 billion valuation, which is overly optimistic about its own development. In fact, millet 90% comes from sales of hardware products.
Foreign media pointed out that millet in China or the world is known to the outside world, is due to its manufacture and sale of Android mobile phones. However, millet advertised itself as a Internet Co belonging to Alibaba, Tencent and other camps.
Fortune website pointed out that Millet's own positioning is not in line with the real situation of the company's business, at least for now.
Millet still needs to convince investors that the company can turn mobile phone sales into a huge profit for other services, that is, Apple's business model.
The main electronic hardware products of Xiaomi are mobile phones and TV sets. Xiaomi's official website also sells a large number of household electronic products, many of which come from the external Hard Suits Inc invested by Xiaomi company.
Millet has provided marketing resources to these external Hard Suits Inc, which has also misled the outside world about what hardware they produce. Before, the millet manager, Lei Jun, also clarified the scope of the company's hardware products, indicating that some of the household electronic products sold were from external companies, and millet did not expand such a large scale of hardware diversification.
Market situation of science and technology stock
Fortune website analysis said another reason for Xiaomi's valuation is the downturn in technology stocks this year.
An analyst at Bear Stearns told the media that Xiaomi's new valuation targets and
It is important to point out that hardware vendors exploit Internet services or media content services through the user's hardware stock, which has been common in the technology industry for the past few decades. For example, Amazon sells Kindle readers at low prices, and profits from products such as digital books.
In the past, Apple launched all kinds of software and services for the sole purpose of expanding the sales of hardware products such as mobile phones, laptops, and other hardware products. Now, as mobile phones, laptops and tablets enter a long-term decline, Apple began to use services as an important source of revenue, offering Apple Music, Apple News, Apple payment, etc., but Apple never boasted that it was a company.