Investors are “beginning to question” Xiaomi’s $46B valuation after the company reportedly failed to hit its sales target of 80M smartphones in 2015, reports the WSJ. That target was itself reduced from 100M last summer, and the company has also not yet delivered on its promise of substantial revenue from Internet services.
Xiaomi has faced tougher competition from more established brands like Huawei.
Huawei’s engineering strength and brand image, built up over decades, make it difficult for Xiaomi to compete in China, analysts say.
“The competition in China’s smartphone market has intensified tremendously this year,” said a Xiaomi spokeswoman, who declined to comment on the company’s valuation or say whether it met its 2015 sales target.
Huawei comfortably overtook Xiaomi to become the Chinese market leader in October of last year …
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