Aabishkar Wagle, Software Engineer at Innovate Tech (2020-present)
A mid-range smartphone only costs around $100 to $150 to be made by a company.
However, the company spend much of the money on marketing and advertisement. That’s why a $100 smartphone cost us $300.
So, what Xiaomi does was they reduced the marketing cost and distributed smartphone by themselves from their own websites.
This made a $100 mobile much cheaper and with good quality.
When people saw the cheap phone, they started buying it.
The devices are worth the price as they have excellent build qualit
Their design is neat and simple
They are also strong towards software side as well. They are extensively working on bringing products with Artificial Intelligence.
It’s not a small company and it deserves to be popular. Their products speak for them.
Roma Hudson, knows Chinese
As a Chinese and mobile enthusiast, I think I can answer this question.
As a new enterprise founded in 2011, Xiaomi was born less than 10 years ago. However, in just nine years, it has grown into the Fortune 500, with operating revenue of up to 30 billion US dollars in 2018.
What is the secret of its success?
1. Cheap and high-quality
2011, when China''s smartphone overlord, or apple and Samsung. They are very advanced, but with extremely expensive prices and arrogant service, many ordinary Chinese can''t afford it. (at that time, the latest Apple mobile phone was $700, while the average Chinese earned only $600 in three months.) at the same time, there are hundreds of local mobile phone manufacturers in China, whose prices are low and their quality is poor. How can high quality be combined with price preference? Xiaomi did it.
Xiaomi 1''s launch
Xiaomi 1’s price is only 289 US dollars, but it has the most advanced configuration at that time.(The CPU adopts a Qualcomm 1.5GHz dual core processor. The screen is a sharp 4-inch LCD with a resolution of 480x854. The capacitive touch set produced by Taiwan TPK, which is specially supplied for iPhone, is adopted. The color of the shell is black, which supports the replacement of multiple color covers)
Xiaomi 1, a classic and sincere work
How can a phone like this sell for 30% of the price of an iPhone be unpopular. After the launch, more than 100000 units were sold in three hours and 1 million in three months. In a flash, Xiaomi became the hottest Internet start-up company.
这样一款售价只有iPhone 30%的手机怎么会不受欢迎呢? 在上市后，3小时内销量就超过了10万部，3个月内销量超过了100万部。转眼间，小米成为了当时最热门的互联网初创公司。
Why is Xiaomi''s mobile phone so cheap?
With the rapid development of the Internet and economic growth in China, Xiaomi initially only accepted Internet booking and limited sales on the Internet, which avoided the stock of mobile phones and the operating costs of stores. At the same time, Xiaomi didn''t spend a lot of money to hire star endorsements and investment advertisements. Relying on the user''s recommendation to let more people know, it saved a lot of money. Finally, Xiaomi also makes money by accepting advertising business (video advertising, application pre installation), and then gives the money to users (the price of mobile phone close to the cost) so as to have high quality and low price.
2. Young mobile engineers and dynamic mobile users here I have to mention MIUI, which is a highly customized system based on Android. Xiaomi''s engineers take the feedback of users, and even many users are involved in the design and modification of mobile systems, which avoids a lot of vulnerabilities and stutters in early Android systems, and has many others Features that mobile phones do not have and are popular with users. Xiaomi''s users have many students. They like Xiaomi''s low price and characteristic electronic culture, so they recommend Xiaomi to their family and friends as fans. The fast feedback of users and the fast correction of the company form a virtuous circle, and Xiaomi high uation "moat" has been built.
3.Expand to all aspects of intelligent hardware
In 2013, Xiaomi began to develop more intelligent hardware (alot). They all have the characteristics of Xiaomi - high quality, low price, and quickly received the love of the rising urban middle class. Today''s millet intelligent hardware field accounts for 30% of the company''s business revenue, and has achieved the first sales volume in many fields (bracelet, power bank, sweeping robot, water purifier, air purifier)
Open Xiaomi mall, you will see a variety of high-quality goods, tempting you to buy them.
Because of this, Xiaomi is not a traditional mobile phone manufacturer, but a "department store", which has successfully entered the lives of more people.
PS: many of Xiaomi''s products are not developed and produced by itself. They come from many emerging technology start-ups in China. Xiaomi invests them and allows them to use their own sales channels and brands.