We’ve all heard about Xiaomi—the phone that will go out of stock within minutes upon its launch. The phone that is priced so competitively that we wonder whether they make any profit. The phone that is recently on a colleague’s bag—who, once, swore by Samsung.
But hold your horses—there’s more to know about this company.
Xiaomi has an ex-Google management staff
Huga Barra, a vice president of Google Android, joined Xiaomi as the VP of International. It is also him who announced the arrival of Xiaomi to Singapore. Now, with a guy who once worked in Google, you can expect nothing but the best from Xiaomi.
Xiaomi sells phones at cost price
If it costs $200 to make the phone, Xiaomi sells it at $200. Now, to any businessman, that won’t make sense. Profits are the lifeline of any company, eh? But no—Xiaomi sells, and wait for the price of the production to drop. That will certainly drop, but the selling price remains.
Here’s an example: in February 2015, Xiaomi makes Phone A at $200 and sells it at $200. The world goes crazy and buys it. In March 2015, Xiaomi makes Phone A at $100 now due to the lower production cost (production costs usually go down) but still sells it at $200. The world is still crazy and buys more. Get it?
Oh, this is just one of their ways to make money. Just for your info, Google and Amazon sell their products at almost cost price, too. In other words, the quality is essentially there. Other brands are selling at a higher price to bankroll their cashflow, not for the quality.
Xiaomi sells better than Samsung in China
Why not? It’s a China company. It’s cheap. It’s good. No one should be surprised. But when the day it sells better than Samsung in Singapore or Malaysia…no one should be surprised, too. Samsung is, to some extent, overpriced. Just look at the previous point. If not for the fact that Google and Amazon products are not sold in Singapore, this might have already happened.
Xiaomi has a business model pretty similar to Amazon
Yeah, that giant online marketplace. Xiaomi focuses on growth instead of massive profits—so does Amazon. Now, Amazon has taken over the world, so if more time is given to Xiaomi, everyone will be shopping in Amazon witth a Xiaomi phone.
Xiaomi CEO’s style is almost similar to the late Steve Jobs
Well, a picture speaks a thousand words.
Yes, right down to how they dress.