The case for Xiaomi, the $70 billion company—and for Xiaomi, the $30 billion company

Xiaomi is preparing for an IPO in Hong Kong, and its valuation estimates are already catching eyeballs. Early this year it was reportedly seeking a nearly $200 billion valuation, a number that became $100 billion when it published its prospectus (pdf) last month. Since then, the figure has dropped to somewhere between $70 billion and $80 billion (paywall).