Recently, Citigroup released a research report that Xiaomi's share price has more than doubled in the past 12 months, mainly based on the market expectation that due to the international situation, Xiaomi will gain more potential market share.

Facing the overheated market, Citi's research report has certain warning significance. Evaluating Xiaomi's share price will eventually return to Xiaomi's fundamentals.

Xiaomi has formed a relatively significant advantage since the dual-brand split in 219. The competitive pressure on Xiaomi should not be exaggerated blindly. Therefore, the real value of Xiaomi should come from the scientific and highly enterprising technology accumulation of its business strategy and its gradual achievements in the development process.

Redmi may be hard to shake

Young is Xiaomi's advantage. As one of the leading mobile phone manufacturers in China, market competition has the function of mutual encouragement at the same time. The fierce competition environment has created the most dynamic mobile phone market in the world, the fastest product iteration speed and the most comprehensive product advantages.

In early 219, Xiaomi split the Redmi brand to consolidate the original market, while liberating the Xiaomi brand to explore high-end and diversified markets.

Over the past year or so, Xiaomi's dual-brand mobile phone strategy has proved to be a great success.

after the independence of Redmi brand, it has achieved remarkable advantages by focusing on online channels and young and cutting-edge user markets.

On May 6, 22, Redmi announced that the global sales of Note 8 series exceeded 3 million units, with an average of 13, people placing orders every day. Redmi has also developed its own high-end product line, forming a complete and comprehensive competition pattern. During February 22, sales of Redmi's first flagship mobile phone, Redmi K2 Pro, exceeded 5 million units.

Canalys counted the best-selling models in the global market in the first quarter of 22, and three brands, Apple, Samsung and Redmi, took all the seats in the top ten. Redmi is the only short-listed mobile phone brand in China, with three models, among which Redmi Note 8/8T has the brightest performance, successfully ranking second and becoming the best-selling Android model in the world in this quarter.

in this process, Xiaomi has also developed a truly high-end flagship product. With tens of billions of industrial investment, tens of billions of technology investment. Xiaomi's hard-core technology, in 22, developed products such as Xiaomi 1 series, Xiaomi 1 Extreme Commemorative Edition, etc., which are the world's leading products in terms of image strength and technical strength.

On October 19th, when Citi Research Report was widely spread, Xiaomi officially released the world's first 8W wireless fast charging technology, which was only two months away from the 5W of Xiaomi's previous generation of 1. The official claims that Xiaomi 8W wireless fast charge, 4mAh battery can be charged half in 8 minutes and fully in 19 minutes.

mass production of graphene-based lithium-ion batteries, mass production of transparent TVs and one-finger UWB technology ... these are a series of technical surprises presented by Xiaomi this year.

in this process, Xiaomi has also successfully promoted the promotion of mobile phone ASP, with an increase of 11.8% in the second quarter of 22 compared with the same period of last year, further stabilizing the high-end market.

various indications have shown that, from the product strategy point of view, the Redmi brand separated from Xiaomi has established an obvious competitive advantage in the same industry, and the construction of Xiaomi brand in technology and brand has made it have a higher level advantage.

overseas advantages that can't be ignored

According to IDC data, in the second quarter of 22, Xiaomi's overseas market revenue accounted for 44.9%. Smartphone shipments account for the top five in 5 countries and cities around the world, and rank in the top three in 25 countries.

according to Canalys' data, Xiaomi's smartphone shipments in Europe increased by 64.9% year-on-year, ranking the top three with a market share of 16.8%. In Western Europe, the growth rate of Xiaomi smartphone shipments reached 115.9% year-on-year, which doubled.

in the second quarter of 22, the shipment of Xiaomi in the Spanish market increased by 15.6% year-on-year, and the market share reached 36.8%, ranking first for the second consecutive quarter. In the same period, Xiaomi ranked second in the market share of smartphone shipments in France and ranked in the top four in Germany and Italy.

in eastern Europe, the shipments of Xiaomi ranked first in Ukraine and Poland, with market share as high as 37.1% and 27.5% respectively.

in addition, in the second quarter of 22, the market share of Xiaomi smartphone shipments in the Indian smartphone market was 3.7%. According to IDC, Xiaomi has ranked first in India for the 12th consecutive quarter.

Xiaomi's position in India is highly stable, and the rapid growth of European market is the biggest bright spot at present, and it is also the key market that major brand manufacturers compete for.

Industry researchers who are familiar with the European market say that the European market is quite different from the China market. Brands that are successful in the China market or online may still face acclimatization in Europe, because if the market in China is open, operators will not take the initiative to purchase. European operators will purchase and sell corresponding packages to subsidize the price difference of mobile phones. Moreover, the big retailers in Europe are super mainstream, accounting for a large proportion.

The researcher pointed out that compared with competitors, Xiaomi's greatest achievement lies in its internationalization according to local conditions, and its model is extremely difficult to replicate: it took the lead in gathering rice noodles through social media marketing, entered the European market through open channels, accumulated market reputation, and finally won the favor and active cooperation of operators including Europe.

The rise of Xiaomi's value does not depend on friends to make profits.

The research report of Citigroup still points out a very important problem, that is, the market needs to correct its mentality towards Xiaomi and return to its essential value.

Xiaomi is not a simple mobile phone manufacturer, but a dynamic technology ecological builder. Chen Hang, chief analyst of Founder Securities' technology industry, recently wrote Xiaomi's research report "The End of Xiaomi". It is proposed that the future of Xiaomi will have three endings.

First of all, Xiaomi will become the leader of AIoT ecology. At present, the Internet of Things has become a rapidly developing field, and it has become the focus of the layout of major companies. The dawn of the AIoT era is coming soon.

in the field of consumer-grade AIoT, Xiaomi has led the world. By the second quarter of 22, the number of devices connected to its IoT platform has reached 271 million (excluding mobile phones and laptops), and the number of users with five or more devices connected to its IoT platform has reached 5.1 million. Xiaomi has become the world's leading consumer-grade AIoT platform.

occupying the commanding heights of future technology, Xiaomi's IoT ecology will be the first piece of Xiaomi's future.

Secondly, Xiaomi will become a world-class consumer brand in China.

Chen Hang believes that Xiaomi's IoT hardware ecology is all-encompassing, with thousands of SKUs such as white electricity, black electricity, small household appliances and daily necessities. Its tentacles are extending to diversified application scenarios, and Xiaomi-style minimalist aesthetics and iPhone-level industrial design are gradually being accepted by consumers around the world.

therefore, Xiaomi's final product is the first China consumer brand with wide world influence.

finally, Xiaomi will have a huge and broad investment ecology.

in the past, Xiaomi's business territory has been continuously expanded by investing in eco-chain enterprises. Facing the future, Xiaomi's industrial investment will make the whole investment ecology hard core.

Established in 217, Hubei Xiaomi Changjiang Industry Fund focuses on domestic substitution and emerging technologies, and has made 42 foreign investments according to public information, 17 of which belong to the chip industry.

Chen Hang believes that hard technology innovation (technology investment) combined with horizontal full-scene innovation of soft technology (Xiaomi ecological chain) will make Xiaomi have an important hard technology industrial chain in China and even the world, and become the next Tencent investment or hard technology sequoia.

great entrepreneurs aim at creating social value. Xiaomi Company's ultra-low gross margin of hardware forced the supply chain to improve efficiency. Through the ultimate cost control and upgrading profitability, it created its own unparalleled efficiency moat, and benefited consumers and created great social value. Based on this, Founder Securities reiterated Xiaomi's recommendation rating.

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