Skip to main content

The curious case of Xiaomi: The...Internet company?

 The curious case of Xiaomi: The...Internet company?


A simple google search led me here, Xiaomi's global VP and MD of Xiaomi India, saying Xiaomi is an internet company CONNECTED via smartphones and smart hardware through IoT.
Basically what he means is Xiaomi isn't in the business of hardware. SUS. The company sells enormous amount of hardware for not calling it a hardware company. The CEO Lei Jun said that company will always limit it's profit margins strictly on or below 5%. 
Xiaomi limits profit margin at 5 per cent; will return the excess to users (businesstoday.in)
So, when Xiaomi entered India and offered smartphones that were 4g ready and spec filled at half the rate of competitors whilst also having good quality, were they doing charity😱.
The answer is :


Yep, Definitely NOT

When a company is offering you hardware i.e. Phones at such cheap prices there HAS TO be some catch after it. Well, Xiaomi's business model is a lot smarter than you'd think. It's business model is ADS. Lots of ads, many many ads embedded EVERYWHERE. those among us who have a xiaomi phone can relate, you NEVER wake up lonely with xiaomi , as soon as you turn on the internet in the morning  you'll be spammed at least 10 notifications, all of these are ads. Any and every app that you try to open, there might be an ad waiting for you. This is xiaomi's money making machine. Instead of selling you a premium phone for let's say 30k+ and have no recurring revenue from you for the next 2-3 years of the life of the phone. They're much happy selling you premium feature phones @ 12-15k and keep sending you ads everyday till the phone stops working. Having a custom made User interface MIUI helps them do this. Which is their entire business. So instead of taking heck ton of money from you once they give you a phone for cheap and keep making money everyday. Props where they're due. Pretty smart.




Labels:

Comments

Post a Comment

Popular posts from this blog

The age of alone

  There are trends that I see in the tech world which obviously affect the very essence of everyone's day-to-day life. The pandemic has been harsh enough already, the physical, mental and emotional health toll cannot be fathomed. However, it is evident from history that come crisis; there have been significant changes in the way humanity behaves, recent changes are something that worry me though. It is said that post the last pandemic; the workers' lives changed for better as their wages were increased because there were unfortunately so few people left to work with. It is assumed that humanity does itself a favor by upping its quality of life post a drastic and sad event such as the pandemic However, I'd beg to differ in the case of the Coronavirus Pandemic; and that is because of digitization ; YES that's correct, this is coming as a person who'd only be excited to know about increased digital penetration in all things we do. One must ask him/herself, just how mu...
Post a Comment
Read more

Killshot

Your loss is our gain, China. The Chinese government just started a massive crackdown on its own Ed-tech industry. The existing Ed-tech firms have been subjected to a lot of financial pain by the move and the upcoming ed-tech startups have been told they can never go public, be for-profit or basically make any money off of it. Now, why'd China try to crack down one of its most up and coming and already massively valued industries (somewhere around 100 Billion $), the answer is a bit tricky. What you may be looking at is the annual exam "gaokao" which is used to get into prestigious undergraduate colleges, not very different from the JEE or NEET. It is a matter of immense prestige for you to have cracked the gaokao amongst so much of competition and parents (of course) take immense pride in it. At the center of all this controversy stands gaokao. What the government claims is the reason why they "had to" pull this move is exploitation.  Yes, exploitation. The  Ch...
Post a Comment
Read more

The Indian smartphone market, the telecom sector and more

 Well hello ladies and gentlemen, and to everyone reading. This is Sohil Bankar. A novice tech enthusiast from India. I am new to every aspect of blogging, let's see how this goes. I've no idea if this will be read anyone as I don't know how Blogger functions. But I like to talk tech, so here I go. Today I feel like I need to talk about The Indian smartphone market , the telecom sector and more   My first phone was from a company named Coolpad, it was a Chinese smartphone brand that's nowhere to be found as of now. I owned it for 2 years I suppose from 2014-2016 roughly. 2014 was a different time than today for Indian Smartphone markets. India was emerging, slowly but surely. There was no XIAOMI or JIO at that time.  It would take another year for JIO to come disrupt the telecom whole and sole and it would also take a year for Xiaomi to start becoming relevant. As I think the success of xiaomi is largely owed to JIO. When I bought my first smartphone, coolpad. Xiaomi...
2 comments
Read more