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Xiaomi has missed its 2015 sales target mark of 80 million smartphones, and this has put the company under pressure to prove the valuation to investors, adds a new report by聽 The Wall Street Journal citing people familiar with the matter.
By tech2 News Staff / 12 Jan 2016 , 10:04
Xiaomi was considered one of the most valued startups, and with it missing the said target, investors may now want to take a second look at the $46 billion valuation. The company had raised huge amounts and now seem to be under pressure to meet the expectations.
Xiaomi came up with the unique idea of selling a limited number of products via flash sale. The company relies only on social media to promote its products. The flash sales gathered a lot of hype, while company also started focusing on fan clubs. It was in December 2014 that the company raised $1.1 billion and leaped to a valuation of $46 million. Highlighting some analysts, the report adds that the easy availability of devices has led to the slowing demand.
The company’s growth overseas hasn’t been swift, but it turns out be quite popular in India. The company had also revealed its. Xiaomi has started making phones in India at a plant in Vishakapatnam. The company has 70 service centres across the country and of them, 10 are exclusive to Mi devices, as reported in September 2015.
This isn’t really surprising as another聽聽last year had called Xiaomi鈥檚 $45 billion valuation as聽鈥楿nfeasible鈥�.
Tags: 80 million smartphone, investors, smartphone sale target, Xiaomi, xiaomi investors