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Why Xiaomi smartphones are so cheap: interview with top-Manager of “Chinese Apple”

About Xiaomi we know that they produce inexpensive smartphones and some other equipment…? Why products “Chinese Apple” are often cheaper than competitors ‘ models? In an interview with Ferra Director of marketing for Xiaomi Donovan San told how the company manages to produce affordable smartphones.

“It is wrong to consider the activity Xiaomi just for example, hardware or services, because our business model is based on three pillars: devices, software, and ecosystem. The price of our smartphones is based on the “cost plus” (a technique by which prices are calculated not on the basis of fluctuations in demand and fixed overhead to the cost — approx. ed.). This is where we differ from nearly all our competitors. And Xiaomi smartphones is a platform with a set of online services for users that are Internet. It is a constant source of revenue that complements our business model,” explained executives.

Donovan San noted that corporate services Xiaomi fixated only on the Chinese market, the company is implementing them in all countries where a lot of users of Xiaomi smartphones. In Russia Xiaomi still beginners, and implement brand services the company intends, when the market is “ripe” for such innovations.

“Xiaomi smartphones are still available, as I mentioned, due to the unique business model of the company and an unusual approach to trade. If you remember, we proved how effective can be the Internet sales when our competitors is not yet aware of. Today we are present in cellular salons, but not simple, and those in which there is “showmanship”, reasonable pricing, and attention to the buyer.

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And the new models is more because they really need customers: new design and materials, new processors, innovations in software and firmware — all of this is really useful, especially because we do not raise our prices for new items, but on the contrary, with each new version saved them on the same level”, – he added.

On the question about the prospects frameless smartphone Xiaomi Mi Mix San said that this unit is the demonstration of the technical potential of the company and a serious approach to design, new technologies in displays of smartphones. This vision of the future Xiaomi phones.

“Mi MIX turned out to be a very successful model and was very warmly received by our fans, so we do not stop innovation in the implementation of displays in smartphones, and believe me, we have plenty of surprises for enthusiasts,” – said the representative of the Xiaomi.

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