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Why are Xiaomi's prices in Europe higher?

When Xiaomi started to make its way into the electronics world, its competitive edge was definitely the price. Now that Xiaomi has ventured into "Old World"Everyone has noticed that smartphone prices are sometimes significantly higher: Lei Jun explains why.

The day after the European launch of Xiaomi Mi 9 it's the day of the reports. Usually when you get close to the Xiaomi smartphone catalog, you do it because you are attracted above all by the price and the high level of specifications of the devices. Once you've tried a series smartphone Redmi or of the series Mi, then, it is difficult to be disappointed and immediately thought to have done the business of the century by paying half, a third compared to the most famous top of the range.

Lei Jun

With this premise, yesterday, during the presentation of the latest Xiaomi high-end device, in Barcelona, ​​the CEO of Xiaomi, Lei Jun, he answered those who asked why in Europe prices were higher than in China. And if the answer can be partly taken for granted, we bring it back to you for the record.

In particular, we gave an example of the price difference of the 9 Mi:

Xiaomi Mi 9 6 / 64GB (price in China)
2999 yuan (395 euro)
Xiaomi Mi 9 6 / 64GB (EU price *)
3400 yuan (449 euro)

* there may be differences between the various States

 

Lei Jun replied that the surcharges depend exclusively on the taxations that, in Europe, are greater. In detail, theIVA of the European countries where Xiaomi sells its devices is on average 20% and we must not forget what is a tax that we often forget. Every digital memory provides for a tax that raises its selling price of about 10%: in France - explains Lei Jun - 64 GB or 128 GB of memory can cost on average 8 / 10 euro more.

Flash-memory-tax-prices-xiaomi

But that is not all. Lei Jun has admitted that an 1: 1 version of the Chinese price will never be possible because, in order to sell electronic devices, a company has to sustain the sales costs that are among the highest in the world.

 

"The 9 Mi will be the latest Mi smartphone to 2999 yuan" (Lei Jun)

Well yes. Lei Jun, yesterday, let slip that after Mi 9 there will be no other Mi series smartphones that will cost less than 395 euros (2999 yuan) in China. The point is that, while a few years ago we were satisfied with a rear camera - often of low level - and processors that were easily available and, at times, poco optimized, nowadays the competition has become so tough that we always have to look for the best component. See for example the new SoC Qualcomm Snapdragon 855 which required an enormous use of resources to obtain a increase in 35% performance and considerable efficiency.

And let's not forget that in about two years we have moved from a camera to three or even four photographic sensors on mobile devices!

Redmi-Xiaomi-prices

It will therefore be Redmi to focus on those products that can focus on price minimization. Xiaomi, on the other hand, "it will focus on innovation and development"- words of Lei Jun - but we will necessarily have to expect an increase in costs if we want new materials and new design models.

 

galaxy-fold-huawei-mate-x-over 2000 euro

But on the other hand ... we are witnessing the release of innovative products with exorbitant prices (over 2000 euro) from Samsung and Huawei, so why not think that a price increase is physiological? Would you accept a slight increase in prices from Xiaomi? What would you expect in return?

Please let us know in the comments and follow us on Facebook page . of XiaomiToday.it!

Marco Rossano
Marco Rossano

Management engineering student, passionate blogger in the Xiaomi world and, more generally, technology. In leisure time, besides writing guides for Xiaomi devices, I have three passions: football, music and cycling :) Write me: https://www.facebook.com/yugin89

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Manlio Alfieri
Manlio Alfieri
5 years ago

While increasing prices "slightly", the quality / price ratio of any Xiaomi would still be more advantageous than other much more popular brands. I am a loyal Xiaomi customer since 2014 (I came from Samsung and even before nokia) and I have not yet regretted choosing this brand.

Kyotrix
Kyotrix
5 years ago

They will certainly raise their prices too, fool them, now that they have made a name for themselves worldwide. It is important that they do not exaggerate like the others and that Redmi remains with its mid-level but cheaper products. This year they probably think my OP3, maybe for the max4 if by June (hoping for a Snap712).

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