Sharp drops in smartphone sales for China's Xiaomi Inc [XTC.UL] will not have a major impact on the company as profit growth will be driven by sales from smart home devices as well as revenue from its software eco-system, a senior executive said.
Xiaomi was valued at $46 billion in its last fund-raising in 2014 - making it briefly the world's most valuable start-up at a time when it was China's best-selling smartphone maker and looked set to make a splash worldwide.
But last year it missed its global smartphone targets by 12 percent, while its third-quarter China smartphone sales have tumbled 45 percent, according to research firm IDC - raising doubts that the valuation is still warranted.
Xiaomi's global vice-president Hugo Barra said the company's business model was not based on money made from handset sales per se and that it did not need to raise more funds or see any point in doing so at a valuation of less than $46 billion.
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