Pricier than Apple? Xiaomi’s hot again, and investors could get burned

A woman shows the new Xiaomi Mi MIX 2 during the Mobile World Congress wireless show, in Barcelona, Spain, Monday, Feb 26, 2018. The annual Mobile World Congress (MWC) runs from 26 February - 1 March and draws over 2,300 exhibitors to Barcelona, including industry heavyweights Samsung, Huawei and Nokia. (AP Photo/Emilio Morenatti)

BACK in 2014, smartphone-maker Xiaomi Corp became that rarest of unicorns, the most valuable startup in the world, with a US$46bil valuation.

Xiaomi applied a seemingly potent formula for conquering the China market. Its phones had quality features and looks, like those of Apple Inc’s iPhones, but came with low prices. Adding to the allure, they were sold only online, with flashy marketing events – sometimes featuring co-founder Lei Jun looking like Steve Jobs in a black turtleneck – to stir up interest.