Xiaomi executive sees no current tech that would force the company to offer a phone for over $699
by Alan Friedman / Sep 06, 2018, 11:05 AM
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 $699 USD or higher. The executive stated that at present, there is no "viable" smartphone technology to include in an Xiaomi handset that would take the price above that figure.
While Xiaomi's board limits the company's profit margin on hardware to 5%, future Xiaomi handsets will have to be priced higher if component prices rise, or if new technology is invented that no phone can be without. Still, the company has been sourcing Qualcomm's latest chipsets for its flagship devices, and often includes a high-capacity battery as well.
Now don't start looking to raise charitable donations for Xiaomi. The company has settled on a business model that includes selling high-end handsets at a more affordable price in order to reap the rewards of selling internet services to a growing number of Xiaomi handset owners. In addition, the firm sells ads on the MIUI skin employed on its phones.
So what happens when Xiaomi enters the U.S., which reportedly will happen as soon as next year. Will it be able to bring its business model into the states without making any changes? How will U.S. consumers respond to the lower pricing of Xiaomi handsets? We shouldn't expect the U.S. to respond to the company like India has. That country has a low per capita income that severely limits sales of high-priced phones in the market. That isn't the case in the U.S. where people are already getting ready to pre-order the 6.5-inch Apple iPhone Xs Max (?) as soon as that unit is unveiled next week.
Posts: 198; Member since: Mar 25, 2018
Tell me i'm wrong but Xiaomi is right there is no reason to pay more than 700€/$ for smartphone's. And if you are than you are just buying the brand!
posted on Sep 06, 2018, 11:22 AM 4
Posts: 605; 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.
posted on Sep 06, 2018, 11:31 AM 1
Posts: 28; 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.
posted on Sep 06, 2018, 12:51 PM 2
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...
posted on Sep 08, 2018, 2:48 AM 0
Posts: 605; 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.
posted on Sep 06, 2018, 11:29 AM 0
Posts: 3092; 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/int
posted on Sep 06, 2018, 12:24 PM 5
Posts: 2118; 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.
posted on Sep 06, 2018, 12:51 PM 1
Posts: 692; 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 $2000.00 IPhone. And the people WILL line up for it.
posted on Sep 06, 2018, 11:38 AM 2
Posts: 148; Member since: Sep 05, 2014
well then drop that 2k Oled 6.3 inch dual front facing speaker underscreen fp reader phone with 512gb of storage while being drop and water resistant 8 gbs of ram newest snapdragon processor liquid cooling sony camera with ois and eis front and back headphone jack 5300mAh battery .... Ill be glad to buy it for under 800 bucks
posted on Sep 06, 2018, 12:00 PM 4
Posts: 515; Member since: May 03, 2014
Xiaomi doesn't do any inventory management. They sell via on-line mostly . Which saves them a lot of expenses. Apple , Samsung, Huawei , LG and others spends a lot in inventory and additional stock . Thats why they are much more expensive. Besides Xiaomi doesn't sell expensive phone afterall . Most of their best sellers are 200$ phones .
posted on Sep 06, 2018, 12:41 PM 3
Posts: 261; 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?
posted on Sep 06, 2018, 6:14 PM 0
Posts: 432; 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
posted on Sep 06, 2018, 6:27 PM 0
Posts: 646; Member since: Aug 11, 2017
I must say that no androids worth above $700. They are garbage!
posted on Sep 06, 2018, 6:47 PM 0
Posts: 432; Member since: May 18, 2018
And what exactly makes an iPhone worth 1200$?
posted on Sep 06, 2018, 6:58 PM 1
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