Reality of Xiaomi - Why is Xiaomi so cheap even with high specifications

Xiaomi is a privately owned Chinese electronics company headquartered in Beijing, China. It is presently the world's fifth largest smartphone maker. Xiaomi’s products include smartphones, laptops, and related consumer electronics. However, no doubt it’s the phones which had actually made the company the world's third largestmobile manufacturer following Apple Inc. and Samsung in the year 2014. Now question might arise in the fact about the way its phones are priced. Here’s a commentary on the sure-enough fact:

• Sale of the products in online:Most of Xiaomi's products are exclusively sold through its online hypermarket chains and stores, which is a massive money saver. It also solely sells its products through it's own online web store, mi store. It entirely outflanks distributors and other third-party retailers, both of which dig for profits of their own and exalt the price thereafter.

• Constrained Stocks: Releasing only a precise quantity of phones each time it's launched, has been a principle of Xiaomi’s game that has helped keep costs down. Thereby, no extra casting.
• Promotions: Xiaomi doesn’t seem to believe in promotions. The company doesn’t spend money on customary promotions or advertisements to hike marketing, unlike other major Chinese smartphone manufacturing companies like Vivo, Oppo, Lenovo, One Plus, Honor or Gionee. The company has confided upon social networking sites, the media and its customers around the globe.
• Innate Policy: Xiaomi's products remain mostly in all online marketplaces for about a year before a new device is launched and then again they launch new gadgets at just the sublime time. Hence, there’s a need of a new smartphone every year! I guess :P

This is substantially how they keep the prices low and provide high-tech smartphones and other electronic gadgets within a decent tariff. And as a deduction nevertheless, I would definitely not consider Xiaomi being compared to Samsung or an iPhone.

Xiaomi is so cheap but do you know

They aren't anymore.

Back when Xiaomi hit Indian market they were offering phones with pretty remarkble hardware for the cost. Back then Micromax ruled the market. What they did was buy phones from Chinese manufacturers in huge batches and rebranded them. They were still way cheaper than Samsung or Sony so people bought them. Their phones didn't have a lot in common as they didn't have much control over the manufacturing process. They rarely used Qualcomm chips if at all. So when Xiaomi first came to Indian market there was no other company that could go tow to tow with them in terms of price to hardware ratio.

Now things have changed. There are many other brands that match Xiaomi in hardware and price - Lenovo, Motorola, Huawei.

Where MI is still better than the rest is the sub 10,000 market. They pay more attention to this segment than any other company and compensate the low margin per unit by consistently selling millions of units every month