Reason behind Xiaomi’s cheap smartphone

Nobody knew about Xiaomi until they launched their Mi3 in India. Mi3 was the 14k phone with Snapdragon 800 that caught everyone’s eye at first. Also, the Redmi Note series was a total show stealer. It offered the best specs for it’s cost.

I am totally a fan of how Xiaomi works.

The question that comes to everyone’s mind, is that, how, just how do they always make ‘bang for the buck‘ products. Do they use bad qualitycomponents? Do they use used components? Do they use fake components? Or is it simply because they aren’t going to last long for that reputation of Chinese products in India.

The answer is – No. Simply not.

The secret is: strategic business

1) Trust > Advertisement

Have you ever seen Xiaomi boards on top of shops? How often do you see Xiaomi advertisements on roads in the form of banners?

Not very often.

They simply spend more money on better components than advertising.

Here[1] – the banners.

Oppo and Vivo catching eyeballs[2]

(P.S. I like Vivo and Oppo for those futuristic phones they have always been making. Vivo Nex and Oppo Find X are absolutely futuristic)

2) They know what to skimp on.

Xiaomi phones offer the best processors for what they cost. They offer unbeatable battery life (and sometimes camera) for the price.

But now since they have offered a great processor and battery, where to make profit from?

They start skimping on less important things like using micro usb rather than using type C. I am pretty sure most people don’t even know the difference between them. They also skimp on higher grade glass protection. They offer gorilla glass 3 rather than the latest ones like 5.

These are the things that matter too less for a great user experience. Replacing these things from a phone not only saves money, but doesn’t spoil user experience either.

They know that processor and battery life are the heart and brain of a phone and that they are far more important than having a sturdy display which not every user breaks.

A great phone is made when the user makes least compromises but most benefits

3)Low Profit margin

They get too less profit per phone.

4)Not spending a lot on the design.

Xiaomi is that nerd in your class that isn’t very creative when it comes to dressing. He looks simple and decent. Sometimes he straightaway copies others’ hairstyles and dressing styles.

(Xiaomi please make a different design for that camera. It looks like the iPhone X.)

(Oops, you just copied the whole design now)

Left:iPhone X

Right: Mi 8

The similarities right here:


But again, it doesn’t spoil user experience. That nerd is still knowledgeable. They know what the Indian audience wants. We don’t want a beautiful phone. We want a decent paisa-vasool phone.

5)Third party apps

Whenever you get yourself a Xiaomi phone, it has some pre-installed apps like Microsoft Word, Microsoft Excel, Microsoft PowerPoint, Amazon shopping and much more. They get commission through these 3rd party pre-installed apps. They are easily removable too. But honestly, they are useful and it makes total sense.

6)Majorly online market

Xiaomi sells most of their phones online, thereby reducing the agent skimp.

The Pocofone F1 is a great example of Xiaomi’s latest marvel[4]

It offers a Snapdragon 845 at Rs 21K. Amazing. Camera isn’t flagship grade though. It’s a mid ranger camera.But what do you expect in those 21K Rupees?

Xiaomi understands the Indian market better than any other manufacturer.

(You must be wondering, why am I boasting so much about Xiaomi. Well, in that case I suggest you go back to point no.1. Am I a Xiaomi employee? No. I am barely 17 years oldyet to appear for my JEE)

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