Even after having so many features, why Xiaomi Smartphone is so cheap?

There are many reasons for this. An ordinary person rarely understood this. Chinese companies follow certain rules that other companies will probably not be able to do. This answer will not only highlight Xiaomi but also the sub-brands of other companies.
The profit margins of Chinese companies that provide you the cheapest price are very low. These companies provide phone to you on 5-10% of the benefits. It has 2 objectives, one is to capture any market (phone market of the country). Second, sell phones in greater quantities so that they get the cost advantage. Yet this margin is quite low.

Designed made in Chinese phone market, are tested designs which are already available. Whatever design you like, just grab the parts by purchasing and assemble it. You do not have to spend R&D. This is aslo a reason for having less prices. That's why Micromax phones in India will look like you just like a Chinese phone.

Most of these companies, phones are assembled according to demand. The cost of keeping in the warehouse is that it can be very expensive by getting security etc. So you get to see the flick sale of Chinese phones on flipkart amazon etc. These phones cannot be sold until a fixed demand is created in the market.

Suppose a new processor is launched, big companies such as samsung, nokia, etc would like to buy it. Since they charge more to their customers, the best batch processors, camera modules, screens, batteries, etc. would be very few in error. Chinese companies choose batch or lot which has either been dismissed or defective. It can also buy those parts at cheaper prices. The phone may have been spoiled and used for repairing.

Xiaomi has started advertising now, but most Chinese companies do not advertise. This gives saves a lot of money. Online advertisements become so popular that TVs are not required.
Even after having so many features, why Xiaomi Smartphone is so cheap? Even after having so many features, why Xiaomi Smartphone is so cheap? Reviewed by SHERE KHOJRAHA on January 13, 2019 Rating: 5

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