Xiaomi is well-known for its cheap-yet-revolutionary smartphones. What is its secret? Let's find out! (Image via Evening Standard)
Xiaomi reveals the secret of the ultra-fast yet cheap smartphonesOffering a competitive smartphone in terms of specification at a reasonable price, Xiaomi revealed the secret of why they make good phones at a relatively cheap price.
Globally, Xiaomi currently reigns as the fourth best-selling smartphone brand. And, the title came not without a reason. Xiaomi adheres to the principle that with competitive price and quality, it will win consumers. And, the principle paid off.
While being cheap, Xiaomi’s smartphone is not something you expect from the price. It is way beyond. When announcing the financial results of Q3 2019, the CEO of Xiaomi, Lei Jun, also shared the recipe of how Xiaomi maintained the low price. Quoting the Gizchina on Saturday, Lei revealed that the company only take profit margins of 8 to 9 percent.
Not only the low-profit margin but also Lei pointed out that Xiaomi relies more on the e-commerce platform to promote its products. Therefore, the price will become more competitively cheaper. Lei asserted that as long as the gross profit is low, and the middle channel is short, the final price will come out really “attractive” to the buyers.
Looking forward to the 5G-powered smartphones, Xiaomi still wants to adhere to its basic. For Lei, the smartphone’s price will grow astronomically as it focuses on the 5G networks. However, Lei believed that Xiaomi can merge the revolutionary technology with competitive pricing.
The result? Another game-changer Xiaomi smartphone.