Xiaomi's Killer App Is Its Business Model

Xiaomi's newly revealed financials show that "build it and they will come" can be a refreshingly effective approach.

Xiaomi Corp., the private company that sells the most smartphones in China, was until recently shrouded in mystery: It wasn't clear how it could make money by selling top-of-the-line products at rock-bottom prices. Xiaomi has revealed its 2013 financials, and they show a handsome profit, which means smartphones from Apple, Samsung and even LG and HTC may be grossly overpriced.

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