Sign in / up

back to article Secretive Chinese smartmobe colossus Xiaomi is on wafer thin margins

Chinese smartphone giant Xiaomi is operating on the thinnest of margins to keep its handset prices low, according to a filing with the Shenzhen Stock Exchange. The Chinese phone-maker, that’s creeping up on Western manufacturers, made a profit of $56.2m on $4.3bn in revenue last year. That gives the firm operating margins of …

COMMENTS

Post your comment
House rules Send corrections
Add to 'My topics' unstar *
  1. P. Lee
    Flame

    Owner-managers

    So some rich people are putting off profit-taking in order to gain market share.

    Heresy! Burn the Witches with the long-term goal of breaking into a difficult market! Burn those who don't worship at the alter of Marketing; those who think a good product might sell itself.

    It's a private company. Perhaps the pre-tax profit is going to the managers as salary. Maybe they haven't sunk themselves in debt and maybe they don't spend money before they get it.

    8 0 Reply
  2. Anonymous Coward
    Anonymous Coward

    Tax avoidance or

    Kit that's high value for money (after infrasture, ecconomy of scale and licensing is taken into account)?

    0 0 Reply
  3. PhilipN Silver badge

    As a privately owned firm ...

    ...it is in their interests to show as little profit as possible.

    Agree with first poster.

    You do know the tax rates in PRC, don't you?

    Plus a chunk of overhead will be going to .. cough cough .. friendly suppliers, who may be the boss's brother-in-law.

    Any different in the Wild West?

    3 0 Reply
  4. Anonymous Coward
    Anonymous Coward

    Why is low profit a problem?

    One guy owns three quarters of the company. I think most of us would be pretty satisfied with three quarters of $56 million.

    He seems to be managing it pretty well, other than Samsung every Android OEM either never makes a profit, or when they make a profit they make a bigger loss later and it is erased. If he wasn't already the owner he'd make a good hire for one of the other Android OEMs to turn things around.

    4 0 Reply
  5. P0l0nium

    A bunch of Communists ...

    An organisation working for no profit ... What could be more Communist than that ??

    On this model they should undercut everyone and inherit the Earth ... right ???

    Oh wait !!!.....

    0 1 Reply

POST COMMENT House rules

Not a member of The Register? Create a new account here.

Forgotten password ?

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like