As the world's fourth largest intelligent machine maker, millet is famous for its wide variety of cost-effective hardware products. Millet was once seen as a major threat to Apple Corp, but investors' enthusiasm seems to have cooled. This may be because millet, like its US counterparts, is actively seeking to tap revenue from the Internet and services business.
Apple has successfully established a $40 billion service department, and by 2023, it is expected to account for 20% of total revenue. But in contrast, Xiaomi's service business grew even more slowly, accounting for less than 10% of total revenue.
Tong Shihao is convinced that Xiaomi's service business will catch up due to the huge hardware ecosystem of the company. He believes that the viscosity of millet hardware is higher than the "hardware we see in the United States". Consumers will be attracted to high-quality hardware at the very beginning. The more devices they use, the more likely they are to use millet Internet services.
"At the beginning, you will see that hardware sales will grow rapidly. What people don't realize is that the more millet products consumers have in their homes, the more they eventually use the millet Internet services, "Tong Shihao said." this is a different type of business model, and the hardware and Internet services are linked together. This lag effect will gradually appear. "
Millet's huge hardware ecosystem has made some people compare it to Samsung Electronics, not with apples, but Tong Shihao insists that millet is different from the two companies.
"I think that, as time goes on, investors gradually understand millet, they see millet as a different type of Hard Suits Inc, different from the common Hard Suits Inc in the past," Tong Shihao said.