Millet Market Value Exceeds Baidu Lei Jun'S Dream To Achieve 1/5

On the 521 special day, the market value of millet went up to $40 billion, surpassing Baidu, but it only completed Lei Jun's dream of 1/5.

　　 Counterattack of earnings report

Recently, Xiaomi released its first quarter earnings report, with a total revenue of 49 billion 700 million yuan during the reporting period, an increase of 13.6% over the same period, and a net profit of 2 billion 300 million yuan after adjustment, an increase of 10.6% over the same period last year. These two key data are higher than market expectations.

And the reason why such an amazing financial report can still be delivered during the epidemic depends on the strong performance of Xiaomi mobile phone business. Data show that in the first quarter, part of the revenue of smartphones reached 30 billion 300 million yuan, an increase of 12.3% over the previous year, 29 million 200 thousand sales of smart phones, an increase of 4.7% over the same period last year, and the global market share of smartphones increased to 11.1%, ranking fourth in the world.

This growth is indeed valuable in the context of the overall decline of mobile phones worldwide. For millet itself, this is the recent quarter of smartphone sales and sales. In recent years, Xiaomi smartphone has been squeezed by OPPO, vivo and HUAWEI in the low-end market, and the high-end market has been monopolized by apple, HUAWEI and Samsung.

And from the first quarter earnings report, millet smartphone is getting rid of the gradual "lag" dilemma. This means that the strategy of millet transformation to high-end market has achieved initial success. In February 14, 2020, the domestic epidemic was just under control. Xiaomi boldly launched the first high-end mobile phone, millet 10, by way of online conferences.

This mobile phone carries the dream of Lei Jun and millet attacking the high-end market. If successful, millet will get rid of the low end and low price stereotype and become the high-end player in the mobile phone market.

This 10 year old millet phone has not disappointed Lei Jun. The first sale of the 10 series of millet has created an astonishing 1 minute sales volume of 200 million, which has exceeded 1 million units in two months after the launch.

With the success of the 10 series of millet, millet on the one hand increased the hematopoietic capacity of mobile phone business, data show that the average price of the global smartphone in the first quarter increased by 7.2% over the same period. On the other hand, millet has been successfully in the forefront of the 5G mobile phone market. Data analysis shows that millet and HUAWEI have occupied 80% of the current 5G mobile phone market share in China.

In addition, the overseas market that has been ploughing for many years has become a strong pillar of millet mobile phone business. In the first quarter of this year, the overseas market revenue of millet accounted for the first time to 50%, and the overseas market was hot, so that millet could continue to develop in the domestic market because of the epidemic situation.

In addition to mobile phone business, AIoT ecosystem, one of the two engines of millet, is gradually showing stronger vitality. In the first quarter, the monthly living users of millet MIUI system, MI Jia App and Xiao AI classmates increased by 26.7%, 53.4% and 54.9% respectively. At the end of the first quarter, the number of IoT devices connected to millet IoT platform (excluding smart phones and notebook computers) reached 252 million, an increase of 42.6% over the same period last year.

Overall, the smart phone's high-end strategy, the continued support of overseas markets, and the continuous improvement of AIoT ecosystem are the keys to achieving counterattack during the epidemic. And in the power of financial reports, the market value of millet has finally begun counterattack.

　　 Counter attack of market value

On the 214 Valentine's day, Xiaomi ran smoothly into the high-end market with millet 10; in 521, the market value of millet surpassed Baidu. Data show that since May, the stock price of Xiaomi has risen sharply, and the price of millet in May 21st has closed at HK $12.70 / share, up 24.5% compared with the closing price of HK $10.20 / share in April 29th.

The market value of millet has also soared in the process. The latest market value is HK $316 billion, and the contract is US $40 billion 770 million, which is higher than Baidu's $37 billion 400 million.

Such a stock price performance is in sharp contrast to the downturn and struggles a year ago. Since 2019, the stock price of millet has been in a state of decline for a long time. In May last year, Xiaomi shares fell below HK $10 / share and had been languished in the price of HK $9 for many months.

During the period, Xiaomi released the semi annual report that exceeded expectations, moved into the new residence of Xiaomi Science Park, and was selected as the fortune 2019 China top 500 list.

However, these positive news did not improve the situation of Millet's stock price. In September 2, 2019, Xiaomi's share price fell to a record low of HK $8.35, with a market value of HK $200 billion 400 million. The market value dropped by HK $332 billion 400 million from HK $532 billion 800 million, which has dropped by more than 60%.

Although Lei Jun has released a HK $12 billion share repurchase program since then, its share price is still only symbolic for a day, and it continues to oscillate at around HK $9.

This situation has been significantly improved in 2020. Looking back on the history of Millet's slump from last year's stock market to its current vitality, it is possible that at the end of November 2019, the major personnel reform carried out at the end of November 2019 and the first 5G phone priced at less than $2000 began to become different.

Since then, lenovo mobile phone "leader Chang Cheng", Wang Xiaoyan, the founder of chili smart phone and other industry giants joined the 2019 annual report, and the continued occupation of millet in the 5G market. These positive factors finally brought Millet's share price to HK $12 from HK $9.

And the market value of millet surpasses Baidu, which means that Xiaomi has completed its counterattack while completing its counterattack in the market value. Nevertheless, the market value of US $40 billion is still far from the target set by Lei Jun at the beginning. In terms of value, millet has only completed 1/5 of the target.

This also shows that at least in the heart of Lei Jun, millet is still not up to his expectations, then the next step, how will Lei Jun lead millet continue to achieve counterattack?

　　 Next step: the counterattack of the electricity supplier?

Compared with the mobile phone business, the electricity supplier business has always been a minor part of Xiaomi's overall business, but this does not mean that Lei Jun does not attach importance to this business. On the contrary, Lei Jun has always had great expectations for the business of Xiaomi.

First of all, the excellent network created by Lei Jun in early years was 3 years earlier than Taobao. It was once one of the earliest and highly occupied electricity supplier websites in the country. Although Lei Jun later sold it to Amazon, Lei Jun has always had an electric business dream.

Secondly, Lei Jun's business thinking has a profound impact on millet. In the days when millet mobile phone just started, Lei Jun skillfully applied the idea of electric business, and transferred the sale of Xiaomi mobile phone to online, and achieved very good results. It is also on the online pre-sale + rush mode. "Millet for the fever" and "the king of cost-effective" have been popular all over the world.

So from all angles, Lei Jun will not be a strange thing to do business. As a matter of fact, Lei Jun has never been absent in the electricity market.

However, due to fierce competition in the electricity supplier industry, such as millet products, such an audience is not wide enough, the product is not rich enough electronic business platform has become increasingly difficult to survive. Lei Jun, if he wants to continue to compete in the electricity market, will inevitably need to devote more energy and resources.

It is worth mentioning that Lei Jun recently interviewed, talked about how to grasp the crisis after the impact of the epidemic, said that the current popularity of electricity providers are also increasing, many of the previous online consumer spending scenarios are now transferred to the online, millet will increase investment in electricity providers, to grasp the bonus of this Internet.

It can be seen that Lei Jun not only intends to miss the electricity supplier market, but also plans to increase investment. Therefore, under the big target of 200 billion market value, the next step of millet will probably start with the electricity supplier industry.