Xiaomi executive sees no current tech that would force the company to offer a phone for over $699

Xiaomi executive sees no current tech that would force the company to offer a phone for over $699
In this age of $1,000 flagship phones, at least one manufacturer vows to keep selling high-end handsets at a more affordable price. If you're a smartphone fanatic (or read the headline to this story first), you probably know that we are talking about Chinese manufacturer Xiaomi. The company released its first phone in 2011, and is now the fourth largest smartphone manufacturer in the world according to Q2 data from IDC.

The company is known for selling well-spec'd handsets at affordable prices, especially in India where it took the world's second largest smartphone market by storm. According to Xiaomi India’s managing director Manu Kumar Jain, the company will never sell a phone for $699 USD or higher. The executive stated that at present, there is no "viable" smartphone technology to include in an Xiaomi handset that would take the price above that figure.

While Xiaomi's board limits the company's profit margin on hardware to 5%, future Xiaomi handsets will have to be priced higher if component prices rise, or if new technology is invented that no phone can be without. Still, the company has been sourcing Qualcomm's latest chipsets for its flagship devices, and often includes a high-capacity battery as well.

Now don't start looking to raise charitable donations for Xiaomi. The company has settled on a business model that includes selling high-end handsets at a more affordable price in order to reap the rewards of selling internet services to a growing number of Xiaomi handset owners. In addition, the firm sells ads on the MIUI skin employed on its phones.

So what happens when Xiaomi enters the U.S., which reportedly will happen as soon as next year. Will it be able to bring its business model into the states without making any changes? How will U.S. consumers respond to the lower pricing of Xiaomi handsets? We shouldn't expect the U.S. to respond to the company like India has. That country has a low per capita income that severely limits sales of high-priced phones in the market. That isn't the case in the U.S. where people are already getting ready to pre-order the 6.5-inch Apple iPhone Xs Max (?) as soon as that unit is unveiled next week.

source: WCCFTech

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30 Comments

1. Elvis358

Posts: 227; Member since: Mar 25, 2018

Tell me i'm wrong but Xiaomi is right there is no reason to pay more than 700€/$ for smartphone's. And if you are than you are just buying the brand!

3. toukale

Posts: 631; Member since: Jun 10, 2015

That has always been the case in Retail since forever. Nothing new here. Let's not forget also, Xiaomi is basically a box shipper. They do not have to create the OS and maintaining it. Google does 99% of that work for them. Same with the hardware.

5. DFranch

Posts: 546; Member since: Apr 20, 2012

Isn't the same true of Samsung, Sony, Motorola ... etc?

11. blastertoad

Posts: 40; Member since: Jul 17, 2018

Both Samsung and Sony do fairly heavy OS modifications. You can thank Samsung for all the advanced multitasking features in Android such as multi window / split screen apps and pop-out apps. Also Samsung, Sony, LG, and Huawei all spend money in R&D developing and refining tech. Brands like Motorola (by lenovo), Asus, Xiaomi, ect all use off the shelf components so they have no development overhead.

28. Gopinath15

Posts: 2; Member since: Sep 08, 2018

Miui is the best modified android OS . I was a beta tester in their miui forum. Right from mi3 days. They iron out issues quickly and support for really longer time. Almost 5 year devices still get updates. Tons of customizations. Apart from one plus oxygen os , miui is the second best. Both are om different ends. Still...

9. Papa_Ji

Posts: 848; Member since: Jun 27, 2016

Xiaomi has its own miui.... They even updates 5 year old devices like Redmi 1s.

23. Marcwand3l

Posts: 432; Member since: May 08, 2017

> Let's not forget also, Xiaomi is basically a box shipper. They do not have to create the OS and maintaining it.

13. BLUEBLASTER

Posts: 930; Member since: Feb 23, 2014

The only thing these Chinese brands are missing is ip68 rating

2. toukale

Posts: 631; Member since: Jun 10, 2015

I always love when Box Shipper companies make such comments. They are using Android, which is created and maintain by Google. They are using off the shelves components that is made affordable by the sheer volume of others. But somehow they try to make it sounds like they are doing a ton of stuff. Would love to see them create the whole ecosystem before they could talk crap. Would they be able to create their own OS from nothing? Where would all those guys be without Google providing them Android as a starting point. So far, only a few companies have been able to create an OS from start at scale (Microsoft, Apple, Google) are the major players. Everyone else have failed.

8. worldpeace

Posts: 3133; Member since: Apr 15, 2016

Oh well, you must know nothing about Xiaomi to talk crap about that. Not all android are the same, Making and maintaining UI is also hard part for manufacturers, and Xiaomi is one of the best when it come to UI and android updates. They got a few thousand workers working for MIUI, and another thousand workers on R&D, and of course they're doing ton of stuff. The DID have their own ecosystem, they got vast cloud services and computing, they make many smart appliances, and many other stuffs. Read this article for starter, they did lots of stuff in the last 3 months.http://telecoms.com/491668/international-markets-pay-off-for-xiaomi/

12. CreeDiddy

Posts: 2187; Member since: Nov 04, 2011

Valid points...Many Android companies are using Google OS, Play Store, and platform to generate revenue. A free OS distributed to hundreds of companies comes with great sacrifice. Revenue, market share, and profits all suffer as too many companies are playing within the same sandbox. Too much redundancy is built on Android.

24. Marcwand3l

Posts: 432; Member since: May 08, 2017

Valid point for ignorants like you. Most phones Xiaomi ships don't even come with Play Store preinstalled.

29. Gopinath15

Posts: 2; Member since: Sep 08, 2018

If you directly import from China, you won't get google play. But for other Asian regions like india, indonesia, Philippines, singapore etc. We have all google play services preinstalled.

30. perry1234

Posts: 646; Member since: Aug 14, 2012

All phones outside China have Google Play Store pre installed. Their sales would be zero atleast in India if it wasn’t.

20. iushnt

Posts: 3103; Member since: Feb 06, 2013

This is what happens when you are too much into Apple, some senseless and illetterate posts.

4. mike2959

Posts: 694; Member since: Oct 08, 2011

There is no limit to what a customer will pay. That’s why you have $200 steaks at your downtown steak houses. And by the way you can’t get reservations this Friday! There will be a $2000.00 IPhone. And the people WILL line up for it.

6. DurTeeDee

Posts: 151; Member since: Sep 05, 2014

well then drop that 2k Oled 6.3 inch dual front facing speaker underscreen fp reader phone with 512gb of storage while being drop and water resistant 8 gbs of ram newest snapdragon processor liquid cooling sony camera with ois and eis front and back headphone jack 5300mAh battery .... Ill be glad to buy it for under 800 bucks

7. L0n3n1nja

Posts: 1557; Member since: Jul 12, 2016

Americans disagree, they love to shell out $1,000 plus dollars for a phone lacking in innovation and cheaper than most to manufacture.

10. Ghost04

Posts: 518; Member since: May 03, 2014

Xiaomi doesn't do any inventory management. They sell via on-line mostly . Which saves them a lot of expenses. Apple , Samsung, Huawei , LG and others spends a lot in inventory and additional stock . Thats why they are much more expensive. Besides Xiaomi doesn't sell expensive phone afterall . Most of their best sellers are 200$ phones .

14. nepalisherpa

Posts: 338; Member since: Jul 17, 2015

"According to Xiaomi India’s managing director Manu Kumar Jain, the company will never sell a phone for $699 USD or higher." That is because no one will buy them.

15. andrewc31394

Posts: 295; Member since: Jun 23, 2012

only product i've ever had from them is the mibox 3 and god that thing was a buggy mess.

16. sachouba

Posts: 266; Member since: Jun 08, 2014

Really, Xiaomi can't see why some phone are more expensive? I assume that their future 700$ smartphone will feature a Wacom stylus, a curved AMOLED QHD+ display, an in-house processor, battery, some fast wireless charging, an equivalent to Samsung DeX and Samsung Pay, a variable aperture camera with dual OIS, etc. Right?

17. JCASS889

Posts: 539; Member since: May 18, 2018

It's freaking true, no phone is worth the same cost as a mid to high end pc, think specs and capabilities. An iPhone compared to a 1200$ is seen as an absolute toy. Wake up people you are being scammed. Those 1200$ iPhone only cost like 400$ to make if that's being generous. You all rely on your phone way to much to the point that you judge someone's life based on what phone they are using. It's seriously pathetic

18. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

I must say that no androids worth above $700. They are garbage!

19. JCASS889

Posts: 539; Member since: May 18, 2018

And what exactly makes an iPhone worth 1200$?

22. cmdacos

Posts: 4200; Member since: Nov 01, 2016

The logo...

25. JCASS889

Posts: 539; Member since: May 18, 2018

welp, u got me there. its sad that people base there status in life to a freaking logo

27. Chidoro

Posts: 168; Member since: Sep 20, 2016

And others by spending far too much time on a cell phone message board talking silly

26. JCASS889

Posts: 539; Member since: May 18, 2018

no phone is worth $700

21. Chidoro

Posts: 168; Member since: Sep 20, 2016

Well, not every company data mines you to hell and back

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