General presentation of Xiaomi
We shall commence our analysis of Xiaomi shares with a reminder relating to this company and its activities. It is in fact important to know this company well including its principal activity sectors to be able to understand the challenges it faces and its growth possibilities.
The Xiaomi Company is a Chinese group, in fact to be more precise it is a holding company. It exercises its activities mainly in the mobile telephone sector, the Internet of Things and related lifestyle products, it is also a provider of internet services and has a number of related investment activities. This group therefore undertakes research and development activities in various sectors.
We can also divide the activities of the Xiaomi Company into four main sectors; the development and sale of smartphones, devices related to the Internet of Things and the related lifestyle sector that develops and sells home based products such as smart televisions, laptops, speakers, smart routers as well as ecosystem products and other smart devices and lifestyle products. There is also the Internet sector which offers advertising and plus value internet services, and finally the fourth sector that provides repair services for hardware products.
Concerning the origin of the Xiaomi Company’s turnover according to its activities we note that the smartphones sector accounts for over 70% of its turnover. The Internet of Things and lifestyle devices account for 20.5% of Xiaomi’s turnover, 8.6% is achieved through internet products and services and the remaining 0.6% is from its other activities.
It can also be advantageous to know the geographical origins of this company’s income, in 2018 Xiaomi achieved over 72% of its turnover in China and only 28% from other countries around the world combined. The Xiaomi Company currently employs over 16,600 people.
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