In recent years there is a contender that has taken hold in the complex world of smartphones and threatens the podium formed by Samsung, Apple, and Huawei. Xiaomi has become the brand with the best quality/price ratio on the market and its smartphones, both high-end and low-end, are truly affordable.
However, this strategy makes the brand barely earn money with each smartphone it sells, which made the situation unsustainable. Xiaomi has managed to expand based on having a good product at a scandal price, but that will soon end. As our colleagues at Andro4all tell us, Xiaomi will start to raise the price of their next smartphones.
Xiaomi copies the worst of Apple
Lei Jun, co-founder, and CEO of Xiaomi has been in charge of giving the news confirming that their next smartphones will increase their price a bit. Apparently, the company has various reasons, among which are that they want to “leave behind its reputation for making cheap hardware. ” They also want to “invest more and make better products” and to do so they must increase the price.
In this way, Xiaomi follows the trail of Apple, again. If you want to create unique devices it is necessary to spend a large amount on research and development, a surcharge that affects the devices you manufacture.
The latest Xiaomi smartphone, the Mi 9, has the same specifications as the last Samsung Galaxy S10, but it costs half, only 449 euros. Lei Jun has pointed out that the Xiomi Mi 9 “could be the last high range with a price below 450 euros”.
We will see how much Xiaomi increases its prices as there is the option to be eclipsed by others, such as Apple. The iPhone XR is usually on sale for prices close to 700 euros. If you raise prices a lot, users may prefer to pay 100-150 euros more and buy an iPhone.