XIAOMI Corp.’s co-founder, shrugging aside a selloff that’s wiped US$6 billion off its market value in just three days, expects the advent of next-generation wireless networks to energize demand for its smartphones.

The firm is now focusing on pushing upmarket while expanding into Europe, forgoing the U.S. market, CEO Lei Jun said. He didn’t outline his reasons for avoiding the world’s largest economy, once deemed a promising arena for Xiaomi.

Xiaomi has announced plans to give its bargain “Redmi” label more prominence so it can begin to raise prices and specs on its flagship Mi gadgets. That effort to elevate its name comes as the smartphone boom plateaus and China’s economy decelerates. But rivals such as Huawei Technologies Co. have already claimed a share of the higher end of the market, encroaching on Apple Inc.’s turf.

While Lei declined to comment on how an economic deceleration might affect his business, he did say 5G will revive not just demand for smartphones, but also the Internet services Xiaomi hosts. They now run the gamut from online music to movies and serve, collectively, some 220 million users.

“In China, the penetration rate of smartphones is extremely high,” Lei said. “But I think we are at the eve of 5G. I believe when 5G phones start to get popular, the overall demand from China will recover.”

Several analysts cut their price targets or estimates on Xiaomi last week. Once touted as an Internet company that can command a value of as much as US$100 billion, Xiaomi is now worth roughly a third of that.

To be sure, it’s come a long way since its inception. Shareholders who’ve owned a piece of the firm since its first funding rounds can pocket a fat profit. Some 3.9 billion shares bought in a round of funding that started in 2010 cost less than HK$0.02 (US$0.003) each. (SD-Agencies)