Xiaomi: All Hype, No Substance

I read an article that carefully examined Xiaomi’s ecological chain.

The conclusion is that the ecosystem companies merely assemble designs; they don’t invest in genuine R&D or production. They seek IPOs through profit-tunneling tactics such as fake ordering.

In other words: factories update designs and patent them as invention patents, then rely entirely on Xiaomi fans to buy them. Orders are fabricated, and once listed, the founders cash out and exit.

A single NetEase Yanxuan company, with thousands of products, is worth more than any Xiaomi ecosystem company that only handles one product.

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