Meizu should be listed for valuation or over 60 billion, how should Xiaomi respond?

In a recent annual meeting, Huang Zhang, the founder of Meizu Technology, delivered an inspiring speech, reflecting on the company’s achievements and future goals. In 2015, Meizu achieved a sales volume of over 20 million units, marking a significant milestone for the brand. He also shared his vision for 2016, emphasizing "stable growth, profit creation, and moving toward an IPO." This goal signals a shift in strategy as the company aims to become more financially sustainable and publicly listed. Despite earlier statements from Meizu's vice president, Li Nan, who once expressed a desire to go public quickly, the company has taken a more measured approach. The year 2015 was a turning point for Meizu, with the launch of the Charm Blue and Metal series boosting sales significantly. While Huawei and Xiaomi have long been seen as industry leaders, Meizu is now emerging as a strong competitor, positioning itself for future expansion. Meizu’s decision to pursue an IPO aligns with market expectations and investor interest. As one of the leading internet-based mobile phone brands, its rapid growth and high sales figures make it an attractive candidate for public listing. However, the path to an IPO isn’t without challenges, especially when compared to companies like Xiaomi, which has already reached over 70 million units sold and a much higher valuation. One notable aspect is that Meizu’s marketing strategies and product launches have closely followed in the footsteps of Xiaomi. While Xiaomi has been cautious about going public, Meizu is now stepping into the spotlight. This move could be strategic, allowing the company to capitalize on market trends and investor enthusiasm. Historically, Meizu faced several internal challenges, including leadership conflicts and product stagnation. In 2014, a pivotal moment occurred when key executives confronted Huang Zhang about the company’s struggles. This led to necessary reforms, such as expanding the product line, introducing external investment, and implementing an employee stock ownership plan (ESOP). These changes helped Meizu transition from a family-run business to a more professional internet company. With Alibaba’s investment and subsequent funding rounds, Meizu gained momentum. By 2015, the company had surpassed 20 million units in sales, signaling a successful turnaround. Analysts estimate Meizu’s valuation at around $10 billion, though this may still be considered high compared to competitors like Xiaomi, which benefits from a broader ecosystem and diversified services. As Meizu prepares for an IPO, there are concerns about potential market bubbles. However, the company’s focus remains on stable growth and long-term success. For now, a safe and well-planned entry into the public market is the priority. (By Niu Yang)

TC-2CGL Series (10.1"-23.8")

touch screen tft monitor,touch sensitive display,touchscreen capacitive

HuiZhou GreenTouch Technology Co.,Ltd , https://www.bbstouch.com