Why Are Xiaomi Smartphones Cheap
I’m pretty sure most of the people that using a smartphone knew about Xiaomi. Xiaomi is a Chinese company that has a really affordable price smartphone with a good specification. I have been using Xiaomi since 2015 or 2016 when they launched Xiaomi redmi 2. I bought the Redmi 2 for IDR 1.5 million or with today exchange rate around 100 USD. It was my first experience with android smartphone, since I was using a blackberry before. I’m sure a lot of people wondering why are Xiaomi smartphones so cheap, I will explain the reasons here.
Nowadays Qualcomm is dominating the smartphone chipset, most of the smartphone are using Qualcomm as the chipset. Now Xiaomi is making their own chipset that makes they could lower the price of the chipset thanks to their partnership with Qualcomm. Meanwhile other company has to pay more for the chipset.
2. Online Store
You might have been noticed this point, the only sell their smartphone online. When their first smartphone was released, they only available online at online store. By doing this they do not need to store their product at a warehouse and pay staff to manage it. I bought my Redmi 2 at one of largest online store in Indonesia, and they became the official store for Xiaomi product. But nowadays there is an offline official store for Xiaomi in Indonesia and of course the price is a bit higher. The good thing about online store is the flash sale, if you are lucky enough you could get the smartphone with a really cheap price.
3. No Advertisement
I think this is the main reason why they could sell their smartphone with a lower price. They do not advertise their product like the other company, they let the users spread the news to the other and it works. Believe it or not, advertisement is one of the reason why most of the product that we buy is expensive.
4. Target Market
Xiaomi target market is also one of the key success of their sells. At first they were targeting the low to middle end user which does not want to spend a lot of money to buy a smartphone. At this market there are indeed a lot of brand but none of them could make a smartphone like what Xiaomi does. After they succeed to surprised the market with their price tag and specification, people started to put an eye and talking about their product. They are started to make a higher specification to attract people that need a higher end specification. Cheap price with a good specification, who would say no to such a product these days.
Now Xiaomi started to make another product besides smartphone, such as smartwatch, laptop, and smart TV. The good thing about Xiaomi cheap price is makes the costumer win, We as a costumer has more choices and other company that does not want to be left behind started to make an affordable price smartphone as well.