If you are wondering why Xiaomi phones are often available at low prices but with very good quality, let the Xiaomi CEO answer them.
Recently, in the process of announcing Xiaomi's third-quarter financial results for 2019, CEO Lei Jun has revealed the reason why the company's smartphones are always good quality but have a very good price. reasonable. The simple trick is that Xiaomi accepts low interest rates, Lei Jun said that the company has a gross profit margin of only 8% to 9%.
Xiaomi's famous founder said that in the coming 5G era, the average smartphone price will increase significantly to meet the rigorous standards of 5G technology. However, Lei Jun ensures that even though his company plans to raise product prices, smartphones from Xiaomi will have better prices than competitors in the market.
The secret to making Xiaomi smartphones available to customers at an attractive price lies in the manufacturer minimizing the intermediary distribution channels with an effective sales model. Ensuring Xiaomi smartphones reach end-users always has a really affordable price.
Looking ahead, during the period of 5G smartphones, Xiaomi will continue to apply the same sales strategy because the current model is working very well. The figures in the latest financial report show that Xiaomi's total revenue is reaching the highest level since its inception, total net profit for the first three quarters reached 9.2 billion yuan, surpassing profit. of the whole of 2018.
According to: Gizmochina