Xiaomi CEO revealed the secret behind its cheap smartphones, committing to 5G smartphones will also have attractive prices

Xiaomi is known as a manufacturer with high configuration, many attractive features, but the price is very affordable. According to CEO Lei Jun, the secret is that the Chinese smartphone maker has a profit margin of between 8 and 9%.

In announcing the business results in Q3 / 2019, CEO Lei Jun said: “I think the profit margin of 8-9% is very low. And because our business model relies heavily on e-commerce sales, the final price our customers pay is very low. It is important that our gross profit is very low and there are not many intermediaries, so the market price is very attractive to buyers. ”

Mr. Lei also said that the value of smartphones will increase when integrating more advanced new technologies, especially 5G. However, Xiaomi will still maintain its sales strategy for upcoming 5G smartphones.

Xiaomi’s CEO believes that it can combine high performance, new features, 5G network technology and an attractive price. If that comes true, consumers will surely benefit.

References: gizchina