How can Xiaomi be so cheap?

The smartphone are also cheap because the focus of Xiaomi is on online market and Xiaomi not spend money on advertisements so a lots of finance is saved and because of that the cost reduces and the get the good margins at cheap price .

Why Mi phones are cheaper than Samsung?

Xiaomi manufactures its phone in China: Xiaomi is a Chinese company. All their manufacturing happens in China, and they take the leverage of Chinese manufacturing. As a result, Xiaomi’s cost of phone production is less than Samsung’s.

How is Xiaomi so successful?

Specifications: One of the biggest reasons for success is Specifications. The company is providing high-quality specifications such as camera quality, processor, memory, display and many more. 3. MIUI: Xiaomi has created its monopoly by creating a high-quality user interface.

Why is Poco phone so cheap?

The 5\% margin philosophy As we know, Xiaomi made a move to cap its profit margin at 5\% in April 2018. This is done to maintain its products at a reasonable pricing for its customers. POCO, being a sub-brand of Xiaomi, follows the very same philosophy. It would have a 5\% profit margin for every Pocophone F1 sold.

Why are Xiaomi phones so expensive?

Xiaomi phones have a longer product cycle. Every new technology costs more and only drops in prices after several years. So, the prices of the parts they use on their phone are higher. As a result, phone prices are also higher.

Why is Xiaomi growing so fast?

Rapid iteration made Xiaomi popular in the Android community. The start-up could move so fast because its first product was actually software – the MIUI ROM designed to work on specific handsets from other brands, allowing users with the know-how to replace their phone maker’s software.

Who is the competitor of Xiaomi?

Xiaomi SWOT Analysis, Competitors & USP