Have you ever wondered why a company would start selling something at such low prices all of a sudden? Xiaomi has also managed to hold its place in the market consistently. This leads to the question of how Xiaomi is selling so many different smartphones at affordable prices? To find the answer keep reading.
The company has implemented a long term plan to increase its user base and later on increase its revenue as well. Following are a few ways of how Xiaomi is expanding its revenue.
By mentioning advertisements here, I only target the ads that you encounter throughout MIUI 10. The company is no doubt making enough money that it may have lost with affordable prices of its smartphones. There is an aggressive implementation of ads in various parts of MIUI skin in which ads show up.
Affordable is attractive to many people.
Whenever the word affordable is spread, people think twice before making their decisions. Why should you go for something that is selling for $500 and that same quality product is offered by some other brand at $250. You would choose the one that is affordable here with not much compromise in quality.
A huge user base
No matter how affordable the products of Xiaomi may be. What matters the most is the vast user base that it has acquired. Too many users mean word of mouth is spread across the people about the company. Many people make their decisions about buying a phone by just looking at their surroundings that which phone is being used the most. The same case goes with Xiaomi.
Partnership with other services
Xiaomi recently partnered with Hungama Music to allow its users to play online songs right inside the default MIUI music player. Don’t you think Xiaomi may have earned a substantial income with this type of partnership? So, this is how Xiaomi may be partnering with many other brands too to have its yield increasing.
More is good
Xiaomi has a quality of offering a ton of great features in its smartphones that its competitors lacked some time ago. With the Xiaomi throwing in so many great devices with a bunch of features, other brands are also trying to follow the trend. An excellent example of this can be Samsung releasing M series smartphones that offer a good number of features like bigger batteries and full-screen displays, and much more. So, Xiaomi has always provided more at affordable prices.
These were a few ways how Xiaomi makes money!