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Ecosystem Analysis: Xiaomi; Internet Services Segment

Sep 1, 2021 | Author : Archie Zhang, Neil Shah, Ivan Lam

Overview: 

Ten years ago, Xiaomi entered the smartphone market with the slogan “best performance-price ratio”. It has done a good job since then, disrupting the market by offering great budget choices. Xiaomi founder Lei Jun has also claimed that the “comprehensive profit margin” of Xiaomi smartphones would not be above 5%. But as a listed company, Xiaomi surely needs a much higher profit margin to please investors. The answer lies in its internet service business unit.

This report combs through Xiaomi’s internet service business unit and breaks down the business model to point out the current difficulties and future opportunities in traffic monetization.

Table of Contents:

  • Xiaomi Group Financial Overview
  • Breaking Down Xiaomi’s Internet Service
  • Internet Service: Refocusing on Ecosystem Strategy
  • Key Takeaways

Number of Pages: 33
Published Date: September 2021

 

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