*By Alisha Haridasani*
Xiaomi, the fourth largest smartphone maker in the world, had a disappointing market debut on the Hong Kong Stock Exchange on Monday.
Shares fell by as much as six percent, with investors worried about the escalating U.S.-China trade war ー the listing came just days after the two countries implemented tariffs on goods crossing their borders.
But investors were also worried about Xiaomi’s vision and growth strategy, said Tarun Pathak, associate director and telecom analyst at Counterpoint Research.
“Investors are really confused about whether to position this company as a hardware company or a services company,” said Pathak.
“Xiaomi has a task at hand to position itself as an internet company going forward when the bulk of its revenue is coming from hardware.”
In fact 70 percent of Xiaomi's revenue comes from smartphones, and the company has been struggling to redefine itself as more than a phone producer.
In its IPO filing, the Chinese company declared that it generated $1.5 billion in revenue from services like advertising and mobile gaming in 2017, pitching investors that it could build out a robust online ecosystem much like Apple's. But it's got a long way to go ー Apple's services business brought in $9 billion just in the first quarter.
In recent years, Xiaomi also started making more than budget smartphones, tapping into electric scooters, water purifiers, drones, and laptops.
"I call it the Triathlete of the New Economy, where Xiaomi makes hardware and devices, sells its products through e-commerce, and offers services on the internet," said chief executive Lei Jun in an interview with a local Hong Kong paper [South China Morning Post](https://www.scmp.com/business/companies/article/2142130/rise-xiaomi-inside-humble-chinese-start-poised-become-years) earlier this year.
Still, services only account for 9 percent of the company's overall revenue.
Xiaomi shares priced at $17 Hong Kong dollars in the IPO, about $2 in the U.S., and closed their first trading day down by almost 1.2 percent. That gave it a market cap of less than $48 billion, a far cry from the $100 billion valuation it was seeking earlier this year.
For the full segment, [click here.](https://cheddar.com/videos/chinese-smartphone-giant-xiaomi-drops-in-debut)
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
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Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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