The imagination of Xiaomi’s Internet value-added services is based on the number and size of customers that the hardware can bind. The competition has intensified, the growth of the main mobile phone business has slowed down, the market is expected to lower its business model, and the valuation has gradually fallen back to the level of a hardware company with no features.
The imagination of Xiaomi’s Internet value-added services is based on the number and size of customers that the hardware can bind. The competition has intensified, the growth of the main mobile phone business has slowed down, the market is expected to lower its business model, and the valuation has gradually fallen back to the level of a hardware company with no features.
Author | Landong Business Guo Chaofei
In May, after serving as the president of Xiaomi China, Lei Jun changed his office and moved from the chairman’s office to the office of the Chinese team. A person familiar with him told the “Blue Hole Business” that Lei Jun said the next sentence, “If the country is not doing well, I will not come back.”
After more than a month, Xiaomi organized a mobilization meeting for the closed team cadres of the Chinese team. Lei Jun said with no worries that the industry has reached the coldest winter, Xiaomi wants to throw away all the “fantasy of speed wins” and prepare for a protracted war until the arrival of the 5G mass popularization period.
To some extent, the latest report released by the market research organization IDC also confirmed Lei Jun’s judgment. According to the report, in the second quarter of 2019, global smartphone shipments totaled 333.2 million units, down 2.3% year-on-year. Among them, Xiaomi ranked fourth, accounting for 9.7% of the overall market share.
In the Chinese market, shipments in the second quarter were approximately 97.9 million units, down 6.1% year-on-year. The overall shipments in the first half of 2019 were approximately 180 million units, down 5.4% from the same period last year. Millet’s market share is 11.9%, ranking behind Huawei, vivo, OPPO, before Apple. In addition to Huawei, the remaining four companies have seen a decline in shipments, and Xiaomi fell 19.3% year-on-year, the largest decline.
The reaction of the capital market is even more intense. After more than a year of listing, Xiaomi’s share price and market value are close to the waist. The initial issue price of HK$17 per share is now only between HK$89 and the market value of HK$400 billion at the high point has fallen to 200 billion.
In response to the crisis, Xiaomi has carried out no less than seven organizational restructurings since its listing. In 2019, Xiaomi and Redmi two brands were separated and operated independently, and the “mobile +AIoT” dual-engine strategy was launched. Lei Jun said, “In the next 5 years, All in AIoT, special investment of at least 100100 million yuan.
The company’s No. 1 Lei Jun rushed to the front line. In the first half of 2019, Xiaomi achieved good results.
On August 20th, Xiaomi’s financial report showed that the first half of the year was 95.708 billion yuan, up 20.2% year-on-year; the adjusted net profit was 5.715 billion yuan, up 49.8% year-on-year. Among them, the second quarter realized revenue of 51.951 billion yuan, an increase of 14.8%; adjusted net profit was 3.64 billion yuan, an increase of 71.7%.
However, compared to IoT, Internet and other services, Xiaomi’s mobile phone revenue growth rate is slow, Lei Jun needs to lead Xiaomi to continue.
Not a workaholic
Listing is considered by many as an adult gift of the company. On July 9, 2018, Lei Jun sounded the bell of Xiaomi’s listing on the Hong Kong Stock Exchange. He said, “The stock starts trading, which is a brand new beginning for Xiaomi.
A year later, in the eyes of a person close to Lei Jun, he was still the “Zhongguancun model.” From 9:00 am to 9:30 am to the company, leaving at 12 o’clock in the evening, going to the two roads and other things to take up, in theory, Lei Jun will leave his own rest time for five hours. At least 300 to 320 days a year is such a rhythm. “He has not slacked off.”
Compared with the other people’s mentality of the Xiaomi management team, there will be some subtle changes. Some executives may start to consider their own interests and future directions. After all, not everyone is consistent with Lei Jun’s ideals. Someone started to join Xiaomi. Just to make a difference.
” Lei Jun always mentioned that your career or everything else comes from the love of something. His movements and eyes are full of love for Xiaomi, but many executives are responsible, this is the difference. “The person close to Lei Jun said.
For the problems and challenges that Xiaomi is currently facing, Lei Jun does not evade in the face of acquaintances. At the beginning of 2019, Lei Jun also publicly admitted at the annual meeting of Xiaomi that Xiaomi mainly faced two major challenges: the public, the expectation of rice noodles for Xiaomi and the contradiction between millet innovation and development speed; the rapid development speed of Xiaomi and today’s management ability. Contradictions between.
The people mentioned in the first article who are familiar with Lei Jun feel that Lei Jun is honest and straightforward, and does not cover up in the conversation. Whether it is right or wrong, he expresses his true thoughts. Sometimes he feels that he has a childlike innocence. This is rare in the entrepreneurial community. However, Lei Jun rarely talks about his own interests and life, and his concerns are almost always in Xiaomi, industry and investment.
In one year, Xiaomi did not adjust the organizational structure seven times. The intention of Lei Jun is obvious, and the logic behind it is also in the same line.
Lei Jun explained that for public companies that have gone through 8 years and have a revenue of 100 billion and nearly 20,000 employees, organizational management and strategic planning must be placed in the first place. Among them, it is very important to improve organizational efficiency and vitality, strengthen the construction of talented teams, and explore more young people.