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Xiaomi IPO: Everything you need to know about potential $100 billion Chinese giant

For a primarily hardware business facing a slowing smartphone market, as well as intense competition, there are a number of risk factors.

“Smartphone sales account for a majority of our revenue, and any decrease in such sales or any increase in the costs associated with such sales may materially and adversely affect our business,” Xiaomi says in its IPO filing.

That is a concern from many analysts too as well as the thin margins already highlighted. Neil Shah, research director of devices and ecosystems at Counterpoint Research, told CNBC that the lack of intellectual property means that Xiaomi’s model could be replicated.

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