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China’s Xiaomi admits it has expanded too quickly

Xiaomi, once the world’s most highly valued technology start-up, has conceded that it grew too rapidly and has pledged to rein in its pace — even as it targets Rmb100bn ($14.5bn) in revenues this year.

Lei Jun, chief executive, on Thursday joined his opposite number at fellow tech upstart LeEco in engaging in a spot of hubris following rollercoaster rides of bold ambition and heady growth. His comments came barely two months after Jia Yueting, who heads up LeEco, released his reflections on his year of “fire and ice” and referred to “big company disease”.  

Xiaomi, which makes products ranging from smartphones to smart rice cookers, typifies the breeds’ almost Icarus-like trajectory. It was valued at $45bn in a late 2014 fundraising, exceeding Uber’s then-$40bn, but then missed its 2015 handset shipment targets as smaller rivals grabbed market share.

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