Xiaomi – a Chinese smartphone brand- is famous for budget phones. To know the reasons why Xiaomi phones are that cheap, let’s follow our post below!

Xiaomi phones: “cheap price” tactic

The first reason is e-commercial. Unlike the others smartphone brands, Xiaomi mostly doesn’t have showrooms. Instead of that, it will sell its products online. This will help the company reduce its expenditure. And as the result, the price of their phones decreases. Secondly, this Chinese manufacturer succeeds in price negotiating with its component suppliers. According to this negotiation, Xiaomi will get component cost decrease over time. And that’s why it leads to a price cut.

Thirdly, the phone maker doesn’t aim at the high-end market or above. Its main purpose is the budget and mid-range segments. Because of this reason, its product’s specs are not very strong, even with the flagship. Just take Xiaomi Mi Max as an example. Despite being the flagship, Xiaomi Mi Max specs are not as powerful as the other flagships from the other brands. So, it’s easy to understand why Xiaomi smartphone is very affordable.

The fourth reason is wise marketing. Xiaomi doesn’t do any marketing campaign which is costly (This means you don’t have to pay for that fee in the price of the product). It will choose a wise way instead. And “flash sale” is an example. This Chinese OEM will sell its smartphone for a short time with a limited edition. And users will have the feeling that the product will be sold out if they don’t buy it. This wise-used strategy contributes a lot in the smartphone price deduction.

Xiaomi phone: world’s best selling phone maker

So, now you can understand why Xiaomi phone is so cheap. Xiaomi has sold couple hundred million smartphones for the past few years. With this business tactic, this phone manufacturer is becoming the best-selling smartphone company in China. Moreover, it is now holding the” world’s third top-selling phone maker” title.