Xiaomi's rivals say it uses the formula that Chinese manufacturing firms did in the last decade to get ahead. Reports indicate that Xiaomi ’s valuation has dropped from $ 40 to under $ 4bn in under two years . Despite experiencing some difficulties in its supply chain this year , the company says that it has “ healthy demand ” with its valuation still standing at $ 45bn . Experts attribute the company ’s struggles , including a market share decrease of 20 % in the first quarter this year compared to the same period last year , to over - ambitious initial valuations and a more cautious Chinese economy .
Reports indicate that Xiaomi ’s valuation has dropped from $ 40 to under $ 4bn in under two years . Despite experiencing some difficulties in its supply chain this year , the company says that it has “ healthy demand ” with its valuation still standing at $ 45bn . Experts attribute the company ’s struggles , including a market share decrease of 20 % in the first quarter this year compared to the same period last year , to over - ambitious initial valuations and a more cautious Chinese economy .