Will Xiaomi Become the New King of Global Consumer Electronics? Netizens List Four Reasons!

Will Xiaomi Become the New King of Global Consumer Electronics? Netizens List Four Reasons!Recently, some netizens have proposed that Xiaomi will become the new king of global consumer electronics, citing four reasons. This statement has sparked heated discussions, and many people are optimistic about Xiaomi's future development

Will Xiaomi Become the New King of Global Consumer Electronics? Netizens List Four Reasons!

Recently, some netizens have proposed that Xiaomi will become the new king of global consumer electronics, citing four reasons. This statement has sparked heated discussions, and many people are optimistic about Xiaomi's future development. According to these arguments, Xiaomi Group is transitioning from a light-asset internet model innovator to a leader in next-generation electronic consumer products with hardcore technology.

1. Continuous R&D Investment, Promising Future:

Xiaomi Group's research and development investment is growing at a rate of 35% per year. This year's R&D expenditure is 80% higher than when the stock price peaked in 2021. This signifies a massive investment in funds and resources for Xiaomi's technological development. While the full fruits of these R&D efforts are yet to be seen, the current trend suggests that the effects of the hefty R&D investments in 2023 and 2024 will start manifesting in the coming year or two. This foreshadows significant breakthroughs in Xiaomi's technological innovation in the future, leading to the launch of more industry-leading innovative products.

2. Sustained Increase in Hardware Business Gross Profit Margin, Demonstrating Hardcore Strength:

A sustained increase in hardware business gross profit margin is a must for global hardcore technology leaders. Xiaomi has been deeply engaged in the hardware field and has achieved remarkable results. This indicates that Xiaomi possesses strong capabilities in product development, supply chain management, and manufacturing, enabling it to provide consumers with high-quality hardware products.

3. Reasonable Profit Control, Ensuring Sustainable Development:

Xiaomi can adjust R&D expenses in other business segments to ensure its overall profit remains within 5%. This doesn't necessarily mean that the actual net profit of hardware cannot exceed 5%. This strategy guarantees the stability of Xiaomi's overall operations and provides ample financial support for future development.

4. Mature System Experience, Expanding Application Areas:

Xiaomi boasts increasingly mature system experience, which has expanded from mobile phones to areas like IoT, automobiles, etc., with growing success. Xiaomi's MIUI system has become one of the leading mobile operating systems globally and is gradually expanding to other smart devices, such as smart homes and wearables. This will further enhance Xiaomi's competitiveness in the smart ecosystem, providing users with a more convenient and intelligent experience.

This netizen believes that Xiaomi is expanding its core product categories and increasing its influence in the consumer electronics terminal field. For example, Xiaomi has achieved breakthroughs in the smart car sector, with its Xiaomi SU7 becoming a hot-selling product in just three years. Notably, Apple abandoned its car-making endeavor after 10 years of effort. This shows Xiaomi's keen insight and execution capabilities in product development and market expansion.

More importantly, Lei Jun, as the helm of Xiaomi Group, holds significant power in key decision-making, enabling the company to minimize detours and focus its efforts on tackling critical products. Lei Jun's leadership will provide strong support for Xiaomi's future development.

Of course, whether Xiaomi can ultimately become the new king of global consumer electronics remains to be seen, requiring time and market verification. However, based on current development trends, Xiaomi has the potential to become an industry leader. Its continuous R&D investment, increasing hardware business gross profit margin, reasonable profit control, and mature system experience lay a solid foundation for its future growth. Xiaomi's expansion into core product categories and Lei Jun's leadership infuse the company's vision of becoming the new king of global consumer electronics with powerful momentum. Let's wait and see how it unfolds.