Chinese phone maker Xiaomi might launch its initial public offering (IPO) as late as 2025, Xiaomi founder and CEO Lei Jun said on Tuesday at a session at the 2016 World Economic Forum in Tianjin. He explained that Xiaomi’s focus at present is on the expansion of offline stores and the development of new products.
Already valued at USD 45 billion, Xiaomi had previously responded to queries about a potential Xiaomi IPO with very vague answers. At the forum, however, Lei announced that “It may take at least 15 years for Xiaomi to launch an IPO since its founding in 2010, because we believe that Xiaomi must first earn the heartfelt trust of our customers.”
A selling point for Xiaomi smartphones that they maintain a cheaper price. Yet as the Chinese market for smartphone matures, Xiaomi’s smartphone growth prospects are beginning to taper off. Data from market research company IDC shows that Xiaomi smartphones had a shipment increase of merely 22.8% in 2015, down from increases of over 100% in previous years. In addition, it was no longer among the top five global smartphone makers in 2015.
To keep its momentum, Xiaomi has adjusted its focus to other directions. In addition to establishing businesses in India and Brazil to promote sales, Xiaomi has introduced products including Mi TV, Mi Band, Mi Air Purifier, and Xiaomi drone.
According to Lei, The company is also attaching higher importance to offline stores. They plan to set up five to six offline stores in each major Chinese city, each sizing up at 250 square feet, situated at major shopping malls.
(Top photo from Techweb.com)