, Columnist
Xiaomi Has a Secret Money Maker
The Chinese handset maker scorned hardware profits and billed itself as a service company. It’s time for management to recant.
Who needs services when customers will pay for quality devices?
Photographer: Shawn Koh/BloombergThis article is for subscribers only.
Investors have been looking for reasons to forgive Xiaomi Corp. for its post-IPO slump. They don’t appear to have found them yet.
Shares of the Chinese smartphone maker reversed a 2.1% gain to plunge as much as 5.5% in Hong Kong on Wednesday morning after the company posted second-quarter earnings. They’ve dropped 47% since the July 2018 listing. The stock had rallied 7% in three days before the announcement, spurring hopes that a bottom had been reached. That’s in doubt again.