Big data, targetted ads: Why Xiaomi is more like Facebook than Apple

Here's how it works: Xiaomi sells a smartphone at near-cost, including its MIUI mobile interface. Through that, Xiaomi tracks your usage and learns what you might be interested in

Services, services, services, services. 

That’s the mantra that you’ll surely hear most as Xiaomi Corp. tries to convince investors that a hardware company with razor-thin margins is worth $100 billion.

“We pioneered an amazing, innovative business model underpinned by courage and trust,” founder Lei Jun said in an open letter accompanying its offer document Thursday in which he reiterated a pledge to cap hardware margins in favor of making money via services.

Reading through its 597-page prospectus, it’s apparent that in Xiaomi-speak, “services” means “serving ads.”

Xiaomi has done quite a job of monetizing device buyers beyond the initial transaction, tripling sales from the