They're doing about $10b / yr in revenue, so this is only a 4.5x multiple, which is small for a company growing this fast. It's true that they have little defe

They're doing about $10b / yr in revenue, so this is only a 4.5x multiple, which is small for a company growing this fast. It's true that they have little defendable IP or innovative products. However, their scale, brand, and direct-to-consumer distribution are all significant barriers to competition. Their model is basically to use their scale and product design process (ie, copy existing products) to make devices cheaper and then rely on their strong brand (in Asia anyway) and direct-to-consumer model to market and sell them cheaper than anyone else is able to. This is why they're now the largest phone maker in China and the 5th largest in the world.