The creator of the brand’s Chinese-origin smartphones Xiaomi has undoubtedly transformed the market with devices that have good quality and inexpensive, so here we tell you why these cell phones have low prices.
We could say that the strategy of establishing Xiaomi prices Within the market, it is considered intense, which has resulted in the Chinese company winning second place in Spain.
Why are Xiaomi cell phones so cheap?
According to what was stated by Lei Jun, who is the CEO of the Xiaomi company, their devices have cheap prices, because they have programmed profit margins that range between 8 and 9 percent, resulting in their mobile phones having costs low, regardless of whether the organization’s profits are not increased so much by sales.
In addition, Lei Jun said that their forms of sale are carried out through electronic commerce and that the total cost of cell phones that the buyer pays is very cheap, that is, the gross profit is low, so the price continues to draw attention to a large number of consumers.
A large part of Xiaomi’s strategy that allows it to have low prices is that users pay for the equipment and the manufacturer’s profit margin and operating costs. Unlike other players in the market, Xiaomi does not invest so much money in advertising and its promotion occurs through the internet and social networks, often with its own means.
Xiaomi’s history is not as long as that of other brands, since this company presented its first phone (the mythical Mi 1) at the end of 2011 and had all the characteristics of the most advanced cell phones of the time and already with a Quite low price compared to competitors like Apple’s iPhone.
Xiaomi cell phones are of high quality and their prices are low. | Photo: Reforma
Last year, a concern arose on the part of Xiaomi users, in relation to some devices that would not be compatible with Android 11, but in reality there were very few, so below we will tell you which ones are currently working correctly.
Xiaomi Mi 9, Xiaomi Mi 9 SE Xiaomi Mi 9 Lite Xiaomi Mi 10 Xiaomi Mi 10 Lite 5G Xiaomi Mi 10 Lite Youth Edition Xiaomi Mi 10 Pro Xiaomi Mi 10T Xiaomi Mi 10T Lite Xiaomi Mi 10T Pro Xiaomi Mi A3 Xiaomi Mi CC9 Meitu Edition Xiaomi Mi CC9 Pro Xiaomi Mi Note 10 Xiaomi Mi Note 10 Lite Xiaomi Mi Note 10 Pro Redmi 9 Redmi 9C Redmi 9A Redmi 9 Prime Redmi 10X 4G Redmi 10X 5G Redmi 10X Pro Redmi K20 (Xiaomi Mi 9T) Redmi K30 4G Redmi k30 5G Redmi K30 Pro Redmi K30 Speed Edition Redmi K30 Ultra Redmi Note 9 Redmi Note 9 Pro Redmi Note 9 Pro Max Redmi Note 9S POCO M2 POCO M2 Pro POCO X3 NFC
Various analysts point out that Xiaomi invests to have solid phones, of good design and quality components, so its low price is not related to the poor quality of the devices but rather that the company seeks to sell more equipment, sacrificing advertising investment and profit, while remaining highly efficient and financially profitable.
It is important to mention that the Xiaomi company also sells other types of electronic products such as: smart TV, computers and tablets.
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