If you have any interest in technology, you may have heard of Xiaomi. Xiaomi is a large Chinese electronics company, headquartered in Beijing, and it’s now the fifth largest manufacturer of smartphones. But can you buy Xiaomi stock? Here’s what you need to know about Xiaomi, and the option of buying shares in the company.
Xiaomi Stock Price
The first thing we’ve got to do is break some bad news to you. There is no Xiaomi stock price because Xiaomi is a privately owned company. Although it’s a large company with over 8,000 employees, Xiaomi has chosen not to make shares available to the public.
Xiaomi released its first smartphone in 2011. At this time, the company chose a very simple approach to marketing. It relied on word of mouth advertising, and Xiaomi only made its devices available for purchase online. This strategy allowed Xiaomi to sell high-end smartphones at low prices.
By 2015, the company’s revenue had risen to 78 billion yuan – that’s the equivalent of about $12.5 billion US. However, Xiaomi began to face stronger competition. Initially it competed with Samsung and Apple for market share, but eventually more manufacturers entered the market.
Xiaomi began to diversify its electronics brand and offered products for both personal and home use, as well as created its own app store. More recently, the company has made strategic moves to partner with other companies, such as Qualcomm and Microsoft.
Xiaomi Stock Code
Despite the success of Xiaomi in Asia and other parts of the world, there are no plans for Xiaomi to issue an IPO. Venture capital firms and other companies are able to invest, however, and you can indirectly invest in Xiaomi by investing in these companies.
Qualcomm, back in 2011, invested in Xiaomi. Xiaomi smartphones use a Qualcomm chip, and this is probably the reason for this initial investment. But even today, by buying Qualcomm stock, you’re indirectly investing in Xiaomi.
Xiaomi also has a relationship with Microsoft, as Windows 10 mobile and other MSFT software is installed on many Xiaomi phones. Not into Windows phones? Xiaomi recently released the Mi A1, which runs the Android platform. As you know, Google bought Android, Inc in 2005.
Xiaomi Stock Symbol
If you’re deeply disappointed that Xiaomi stock isn’t available to the public, we have a bit of good news for you. The company has stated that there is a possibility of an initial public offering to investors – in 2025.
Unfortunately, you’ll have to wait quite a while before the stock comes available, but once it does, analysts expect a successful IPO. In the meantime, however, you can invest in Xiaomi by buying stock in some of the companies which are critical to its success.
Ambarella is one such company. This company is most well known for providing HD video processors for GoPro products, but also supports Xiaomi’s line of smartphone devices. Ambarella (NASDAQ: AMBA) has seen rises and falls in its stock price over the past few years, but remains a promising investment.
InvenSense is another company which supports Xiaomi’s product line. InvenSense (FRA: INVN) supplies motion tracking sensors for mobile devices. Xiaomi and INVN have a partnership, but InvenSense also works with Apple and Samsung.
Finally, Qualcomm was mentioned earlier in this article. Qualcomm is perhaps the biggest publicly traded investor in the success of Xiaomi. The company owns stock in Xiaomi, and Qualcomm (NASDAQ: QCOM) also supplies chips to the phone manufacturer.
Xiaomi Stock Exchange
There’s still a lot of time between now and the Xiaomi IPO. That said, it’s unclear which exchange the stock will be listed on. In fact, Xiaomi CEO Lei Jun and his board are still only toying with the idea.
Xiaomi has been successful to date, and there are many reasons why a company would choose not to go public. To begin, once a company does offer shares to the public, that necessitates an accountability to investors. Xiaomi has performed well despite an unconventional business model. Execs at the company have a mindset of “if it ain’t broke, don’t fix it.”
Secondly, the company doesn’t necessarily need to raise capital, which is one of the primary purposes of an IPO. The company has had investors like Qualcomm to support it, and its balance sheets are healthy without an additional stream of income.
It’s still presumed that Xiaomi will go public within the next decade, however. Keep checking back with the Buy Shares In investment guide for news about an IPO price as well as the chosen Xiaomi stock exchange.
Xiaomi Stock IPO
Xiaomi is in the top five of smartphone brands, globally. This, of course, means two things. First is that the company is doing quite well. The second is that it’s got a bit of competition in the market.
Samsung is the top manufacturer of smartphones in the world. It’s a subsidiary of Samsung Electronics, and ships and sells about 30% of the smartphones sold each year.
Apple follows Samsung, which may be surprising to some investors. It’s one of the most widely recognized brands in the world, selling 200 million phones annually, Apple is also a diverse company; its business model has expanded greatly since its launch in the 1970s, and includes computers, web services and more in addition to its smartphones.
Huawei is another competitor, and this stock is listed on the Shenzhen Stock Exchange under number SHE: 002502. It’s not a widely sold brand in the United States; only a few carriers support the phones.
Finally, and most surprisingly, Lenovo is a strong competitor to Xiaomi. It’s a subsidiary of Motorola. Motorola sells its well-known mobile devices, but alongside those products are a line of Lenovo phones. These phones are popular for their ability to be customized, and like Xiaomi phones they carry Qualcomm processors.
While there’s currently no Xiaomi stock exchange, an IPO may be coming in the distant future. Be sure to check back regularly to Buy Shares In for more Xiaomi stock information, and to check out our investment guides on Xiaomi competitors.