Research On The Profit Model Of Xiaomi Group In China’s Smartphone Stock Market

With the continuous growth of China’s economic level,the quality of national life has been rapidly improved,and residents’ consumption has been continuously upgraded.At the same time,due to China’s huge investment in infrastructure such as base stations,the improvement of infrastructure has laid a good foundation for the rise of mobile Internet,while smart phones,as an important carrier of mobile Internet,have further promoted the development of smart phone industry,Smart phones began to penetrate into all aspects of residents’ life,and finally became an important terminal for the stable operation of the national economy.Due to the excess performance of smart phones and the serious homogenization of mobile phones in the industry,consumers have a long change cycle.After years of rapid growth,the sales scale began to slow down and shrank in 2017.Therefore,China’s smart phone industry entered the stock market.In the stock market,many enterprises in the smart phone industry are facing extremely fierce market competition,pay more attention to the profit model and begin to seek transformation,so as to improve the competitiveness of enterprises.Xiaomi group,as one of the few enterprises in the industry that have successfully adjusted its profit model,its experience in optimizing its profit model is worthy of reference for enterprises with similar businesses.Firstly,according to the existing profit model theory,the research results of scholars at home and abroad and the main profit models of the Internet industry,this paper makes an in-depth analysis of Xiaomi’s profit model from four aspects: profit point,profit source,profit leverage and profit barrier.Then,through the financial evaluation of Xiaomi group’s solvency,profitability,operating capacity and profit quality,it verifies the success of Xiaomi group’s profit model from a financial perspective.Finally,put forward relevant optimization suggestions for the problems existing in the profit model of Xiaomi group,such as reducing the compliance risk of overseas business to enhance the stability of overseas business operation;Improve the market share of high-end mobile phones to further give play to the advantages of Xiaomi group’s profit model,etc.The research found that,on the basis of conforming to the changes of the times and fully combining with its own profit barrier,deep cultivation of profit points,diversification of profit sources and profit leverage are the key factors for the success of Xiaomi’s profit model,but the risks brought by diversification are also obvious.The lack of innovation of profit points restricts the expansion of market share;The complex and changeable overseas market increases the uncertainty of revenue;The development of offline channels and the implementation of dual brand strategy have increased the operating cost;The expansion of the ecological chain has increased the management difficulty of Xiaomi group.Based on the actual situation of Xiaomi group,this paper provides a series of optimization suggestions,which can be used as a reference for Xiaomi group and other similar enterprises.