Why xiaomi will fail
Now Xiaomi is very famous company for mobile phones. They earn so many reputation on markets. Now Xaiomi is the king of the indian smart phone markets. They have the highest number of phones which are selling in the market. And recently they have shipped over 100 million phones in the indian market. They looks like pretty healthy phones company. But internally the xiaomi is gonna collapse. But why??? Xiaomi is successful why they gonna ever fail??? It is very good question ever. Today we the "All Unknown Fact" team find out the answer in this post. So read this post from the beginning to the end. So let's get start it.
What is xiaomi main business???
When Xiaomi entry on indian market that time they came like a market distractor. They already do it on China. It means high quality phones are sale very low prices. Because they sale there phones on online market. They are not invest any money on marketing. 2017 time they grow so much on market. 2018 time they join on offline market. We all are know offline market is very hard market. Because offline market starting time so much money invest to open stores, dealer and to do a lot of advisement. When many ads are shown then more are sale. Still they come on offline market and do heavy advisement. 2018 time you can see xiaomi ads on tv, newspaper and many more places. That time they cost so many money on media. But they mobile price has not increased. It is very good work from Xiaomi.
How they earn so much money and what is there main earning point???
There 70% earning come from mobile selling, 21℅ come from there another accessories products (tv, power bank, fitness watch, router, light etc) selling and 9% come from internet services. Xiaomi always claims that they are a internet base company. They are not a mobile phone company. There IP have write that Xiaomi is a Internet service company. MI one of the full from is Mobile Internet. There main business is internet services. It means xiaomi is not a mobile phone company. As you can see when you use xiaomi apps like mi video and MIUI that time they show ads. And xiaomi cloud selling is also a internet base service from xiaomi. It means xiaomi all own apps had they show ads and earn. Xiaomi release mi pay for expression their internet business on india. It help user to payment money on online by using UPI. They mainly launch it for make more money. Upcoming time it have will be come lone option available. It can help xiaomi to made more and more money from internet services. We can say that they are not try to earn money from mobile phones they try to earn their main money from internet services. But now their majority earning come from mobile. Xiaomi said that they earn 5% on their phone. But their profit is actually close to 9%. They make a lot of low profit from mobile phones, so they can sell so many mobiles. If the internet business is talking about it, then they make up close to 60% of the Internet service. If xiaomi provide more internet servoce so they can earn so much more. We can see that internet service business is so better. So google, facebook, amazone they all are earn there majority profit by using internet services. Now Microsoft, Apple also come this business. Because they all are know that they can earn more profit by internet services business. And everyone use that service so it is very simple to grow there business. If you say mobile business. So two companies can be gained highest profit in mobile business. They are samsung and iphone. They selling mobile phones and earn there majority profit. Because only they are successfully to find out that how earn by selling phones. If you say xiaomi so it fully reverse they sale there phones very less prices and after show ads by using miui and earn majority profit. It fell so simple to see and hear. But it create a problem. That is when they run there business on china that time it run properly. Because google services are not available on china. Chinese all phone company give there phones there own app store. If anyone buy a xiaomi phone on china. Then he must use xiaomi apps, xiaomi apps store, mi pay etc etc. Because google are not available on china. But when xiaomi come on international market that time it fully change. Because google services are available on international market or everyone like to use google services. All xiaomi user like to download apps, games from play store not like to download from mi apps store. We have a question. That is if you need to use online cloud, which one do you use mi cloud or google drive? Generally you majority chose google. People like to use google free services as compare to xiaomi services. It is very simple to grow xiaomi internet services on china as compare to grow globally market. Because china give they advantage. But globally could not give they this advantage. Now xiaomi plan was not working. We all are know that many people are use xiaomi phone but they did not use xiaomi apps they use third paty apps. Now people also know that how disable ads. Earlier time xiaomi show ads and could earn some money. Which is now gradually decreasing. We can see that they sale many phones but they are not earn lot of money. Or if we say there internet services it can not grow on market properly. The story not end this place. Now xiaomi get Competition from another company. Many phone company also copy xiaomi plan. They also sale phones low price on online. Such as vivo. vivo made z series for focus on online. They try to sale high specifications phones low prices. Or realme also start to make phone very low prices with high quality specifications, onelpus also start this business and they earn a good market share. Many biggest phone company copy xiaomi business plan. And competition with xiaomi. They grow there business very properly. It is a very interesting facts ever. If you say xiaomi china business place so it is becoming increasingly difficult to grow the xiaomi business. Chine top phone company are Huawei, Oppo, vivo after come xiaomi name. Chinese phone market fully changed. There people are now not like to buy low price phones with many specifications. Now they like to buy more and more premium phones. So huawei, Oppo, vivo grown very goodly. The market share of xiaomi is decreasing a lot on china. If you say xiaomi another products for earn money. So there story also same. Xiaomi another products like tv, power bank, fitness watch, router, light etc. They sale it many lot of low prices and earn very low profit. It means xiaomi sell very high quality products at very low prices. So they can not made lot of profit. There plan is high quality products are sale very and very lowest prices. But this plan was not working. As we can see that xiaomi is not a charity company it is a fully company. And running a company requires money that xiaomi does not have. If company have profit so they can made many new quick phones and products. If company have not profit so company will be close. But now xiaomi have not profit. This rezone we see and say you that xiaimi will failed. We are see that reasons and say that xiaomi will fail. If you look at a company's market share, you will understand how the company is in the market. First time xiaomi stock trade is HKD 21.45. 2018 it go on HKD 16.58. Down this picture will understand xiaomi stock trade go down and down.
Now xiaomi HKD is 8-9. It means xiaomi now not perform so good. Xiaomi not earn so much profit. There main business internet services not grow on worldwide easily. And earn profit is biggest hard problem for them. Company not earn their best profit. They sale low prices phone. They are not try to earn profit from mobile platform. And they are not successful to grow their internet services on international market. People like to buy their phone but they are not like to use mi own app and to see ads. Now chinese market also changed so xiaomi now get only bed results to grow their business. So how they get profit for run company??? Clearly we are know that xiaomi business model is not very profitable. If they try to take investors from outside. So they did not do it. Because investors know that xiaomi share prices are very bed perform. It is very hard to xiaomi to get investors. We hope this reason are will made xiaomi fail. Company net profit but if company not made profit so what do the company??? We hope xiaomi will find this problem solution. It means another ways to made money. They are not made good profit from internet services. Now their work is to do try to entry another business. After made profit from it and then that business moved to mobile businesses. So we will see more specifications phones from xiaomi. Or it may also be that Xiaomi could sell more expensive mobiles. It also possible. Now it does not seem to Xiaomi give you the expiration mobiles. Because they move another profitable business for earn many profit from you. Now Xiaomi seems to be planning something for it. It will be a subject to see what the future of xiaomi??? Let us know your answer by commenting below.
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