Have you ever thought how come brands like mi , redmi and poco could offer such great specs in low price, are they really good specs? or xiaomi and redmi cheats you with cheap quality components? let see in detail about the scam 2021 stories.
Conspiracies about xiaomi
backstory -
Xiaomi fans chill out, there is no scams, let me explain where i came up with the whole blunt accusations, a month when i had conversation with my friend about the Redmi note 10 pro and pro max
I said "it is amazing phone dude no other mobile in this price range have 120 hertz AMOLED display with 108 MP main camera dude"
But that moron replied "dude how could they offer a spec like that which happens only to exist in costly top end mobiles, i don't believe it, xiaomi might scamming us dude"
Orgin of xiaomi scam conspiracy -
The main source of the conspiracies are from the sales person in offline stores, most of the xiaomi mobiles are online exclusive, even if online stores had some xiaomi mobile units,
If a customer comes to buy a mobile, the sales person in the offline stores will try hard to push you to the brands like vivo, oppo, samsung, because the shops get more profit from these brand than xiaomi, because they're targeted on offline.
So these sales person tells customers the things like xiaomi, redmi, poco are low quality brands, redmi phones heats up a lot, its runs slow, they use cheap quality components, those lot of lies created a common belief across some people.
Thats what happens when you offers your products cheaper, then how could they offers all these amazing spec in low price lets find how they do it.
Xiaomi and redmi pricing strategy
Xiaomi basically sells huge number of their phones with low profit margin like 5% but how could they turn into tech giant by only that, but not only that they also use some other strategies, let see those things.
Advertisements-
Have you ever thought why you see lot of billboards, TV ads, sponsored shows and events, and other ads from brands like samsung, vivo, oppo because they spends millions of money on advertisement that cost indirectly added to their products.
Unlike those brands xiaomi doesn't spends that much on advertisements, they rely much on their fans word of mouth, social media.
Bulk purchase of products-
Bulk purchase is a universal cost cutting strategy used by lot of manufacturers, when xiaomi have to purchase a component like processor, displays from manufacturers, they purchase it in in large numbers, that considerably reduces the cost
They can do it without a hesitation because they have customers in many of market regions and xiaomi and redmi releases different mobiles with same specs with slight differences to burn their huge resource.
Mi online exclusive flash sales-
Xiaomi sale their phones in online exclusive flash sales, which cut out middlemen vendor and dealers commissions, they further lower the price.
They follows the manufacturing technique called just in time manufacturing which comparatively reduces the cost for storing huge stocks.
Mi products-
Mi not only manufactures the mobile phones they manufactures lot of gadgets and smartphone accessories by which they make 20% of the profit
In gadget and accessories market xiaomi dominates a lot because they already huge audience for mi accessories such as heaphones, earphones, powerbanks, and even home appliances.
MIUI Ads and applications-
One of the way MI found to get the profit from the sold mobiles by running ads in the UI and system apps and also redmi also get money from some preloaded apps,
Even though it makes the mobiles cheap, some of the fans hated MIUI for running ads and became a major disadvantage for the MIUI
Conclusion
By all these strategy they cut lot of pennies from the mobiles, so with those saved pennies they could include much more features to the mobiles,
Xiaomi driving the whole midrange phone market they actually kick started it with their note series, they makes the competition heated, push other smartphone to include more features and price them competitively,
The whole point is you have to support brands like xiaomi, redmi, poco, realme, they making the midrange mobiles and budget flagship great and make the other brand to price competitively.
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