45 billion dollar millet: where is the Achilles heel?

December 29, Millet Technology CEO Lei said on Weibo, just completed a new round of financing, financing amount of 1.1 billion U.S. dollars, the company's valuation reached 45 billion U.S. dollars. This means that millet is more than $40 billion worth of Uber, the world's highest-valued internet start-up, which means that millet is more than $33 billion trillion in Beijing east, becoming the fourth-largest internet company after Alibaba, Tencent and Baidu. Recently, Lei particularly High-profile, high hit, a lot of mergers and acquisitions expansion, like last year's Alibaba. However, meticulous anatomy of millet can also see many of its Achilles ' heel. In the high profile, Lei can not be good news to the mind, keep calm, do not forget beginner is more important. First, the core technology and patent issues are the biggest weakness. Although millet rapid rise, but in the core technology has been in the catch-up stage. Especially compared to Huawei, ZTE, such as the transition from communications equipment to mobile phone manufacturers, this gap is particularly prominent. The core technology of the short board, the performance of patent deficiencies. The recent problem with Millet in India is the response to this problem. Millet in the domestic market encounter growth bottlenecks, must be in the foreign market expansion, and once open up the international market, the patent will be a barrier. Second, millet needs to enhance the control of the industrial chain. The handset manufacturer wants to realize the healthy development, must control the industrial chain. Either Apple or Samsung. Control of chips, panels and other core components, for the rapid launch of products for the protection of timely delivery is very important. Of course, we see Millet is also invested heavily to make up the short plate, for example, in the chip field, millet and core technology set up a joint venture to do mobile phone chip is so, but these need a relatively long process. Thirdly, the construction of ecological system of software and content needs attention. Lei from the hardware into the Internet, the fancy is certainly not the hardware that little profit, must rely on software and content to make money. But in this respect, millet born weak, although the earliest in MIUI performance, but in software and content, lei to do a lot. Recently, Millet will Chen dug, and investment Archie art, excellent soil and other video companies, is to explore the software and content on a road. Four, the diversification of millet and the promotion of the focus of more and more distance. In the secret of Lei's success, "Focus" is a very important keyword. It is precisely because one year only to do a mobile phone focus, millet can concentrate resources, manufacturing products, thus bringing the ultimate experience. But Millet is moving toward the opposite side of focus this year. Mobile phone is no longer a year, from mobile phones to tablets, television, hand ring, smart home, routers ... Less focused, this decentralized approach can easily affect the user experience, and then repeat the traditional vendors. Five, millet channel is increasingly isolated. Millet is now China's third largest electric business, but millet in the channel is too selfish, in the social channels increasingly isolated. Millet and Jingdong has not been cooperative relationship, and Alibaba's relationship with Alibaba and the charm of the combination of lukewarm. Millet doThe foundation of the electric quotient is the fan culture, if the public user of millet has negative word-of-mouth effect, it will affect the brand of millet, and thus affect the traffic and attention of millet in the electric business. At this time, in the case of other channels in general, the power of millet flow from where? Finally, can millet's low profit margin support valuations? According to foreign media reports, there is a detail, in the All-Stars, Singapore sovereign fund GIC, DST, Yunfeng Fund and other investment in the case, some large investors refused to participate in the financing transaction, Because they worry that millet can not successfully transition from smartphone vendors to High-margin software and services platform, that the value of millet is too high. In cooperation with the United States, millet financial data exposure: Millet technology 2013 revenue of 26.583 billion yuan, operating profit of 486 million yuan, net profit of 347 million yuan; As of the end of the year, Millet science and technology total assets of 6.452 billion yuan, total liabilities of 6.057 billion yuan, the owner of the rights and interests of 395 million yuan. Based on this data, Millet technology net profit margin is only 1.3%. Whether such a low profit margin can prop up 45 billion of dollars in high valuations is questionable. In short, the rising speed of millet is breathtaking, but in such a fast-changing era, subversive is easily overturned by another subversive, millet can make up these soft spots, create a miracle? A shark in the South (micro-trust: Southsharker): To understand the trend of industry development, revealing the truth behind the news, summed up the experience of the Internet. Focus on a shark in the south, read the internet here, because we know the trend, we can win the future.