How are Xiaomi Smart phones priced low compared to other brands in Markets??

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asked Oct 7, 2015 in Technology by Karthik_Kannan  
i saw in every Website that Xiaomi Smartphones priced very low in Markets compared to other brands. But configuration of that mobiles is also high.i dnt know why the cost is very low compared to other brands??


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1 Answer

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answered Oct 10, 2015 by kkmkaran (220 points)  
Xiaomi works on simple fundamental that each phone will be market for 15-24 months while other target period is 12-18 months. So here Xiaomi makes handsome profit for its R & D activity from same while others have to keep on launching new phones at higher price. Also Xiaomi sells only online, there also its saves 10-15% on margin. Also xiaomi has not invested heavily on service centres whereby saving cost. So cost vs benefit is main factor for xiaomi sells in Asia.

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