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Why does Xiaomi propose smartphones at lower competition prices?

One of the most obvious realities when talking about the Chinese Xiaomi giant is the value for money of its products. Although the quality is comparable to that of competitors (think for example of comparison) Samsung Galaxy S7 vs. Xiaomi Mi5), the selling price is significantly lower. But why does Xiaomi manage to adopt such a commercial policy while the others do not? It's all about popularity and long-term strategy.

In fact, being a relatively new company (remember that Xiaomi was founded in 2010 and started producing smartphones since 2011), its initial popularity was certainly not comparable to that of Apple and Samsung, even within its own borders. For this reason, Xiaomi had to sacrifice part of the earnings in order to convince users to buy their smartphones, completely similar to the competition from the point of view of the technical data sheet, instead of those of other manufacturers. In reality this is not a strategy adopted only by Xiaomi but, more generally, also by all Chinese manufacturers.

Once popularity has come, Xiaomi's management has had to choose whether to be faithful to its users by continuing to propose products at low prices or to make their investors happy by raising the average gain on each product. Guess what was the leadership choice?

Such a thing must necessarily be adopted in every new market where the popularity of a brand is not so high. For this reason, we are confident that, as Xiaomi smartphones will officially approach our continent (hopefully as soon as possible), the average cost will be lower than that of the competition, perhaps more expensive than Chinese fees due to taxes additional (so that you do not reduce the earnings even more), but still lower.

In short, by looking at the colossus that has become, we can no doubt assert that the commercial policy adopted by Xiaomi has been a winning policy.

via | Xiaomi Fans Italia

Simone Rodriguez
Simone Rodriguez

Blogger, but above all passionate about technology. I am part of a generation that has passed from the cathode ray tube to smartphones, making me witness to an unprecedented technological evolution. From 2012 I assiduously follow the Xiaomi brand that with the conveyance of various projects led me to realize XiaomiToday.it, the home of all the Italian Xiaomisti. Write me: [email protected]

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