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They make smartphones -- they're a hardware company. The money will probably help them ramp up production and increase advertising presence. The valuation impl
by repsilat 12y ago
They make smartphones -- they're a hardware company. The money will probably help them ramp up production and increase advertising presence.
The valuation implies that they're profitable, but it takes time for profitability to turn into cash in hand. Raising this money (an action pretty similar to taking out a loan) will let them strike while the iron is hot.
- justaman 12y agoIt appears their margins are razor thin. http://www.forbes.com/sites/parmyolson/2014/12/15/xiaomi-profit-margins-samsung-china/ http://www.forbes.com/sites/parmyolson/2014/12/15/xiaomi-pro...
- tiatia 12y ago"They make smartphones -- they're a hardware company." Actually, they don't make smartphones. They design and sell smartphones.