How Xiaomi keeps its smartphone pricing low

Posted on Tuesday, January 20 2015 @ 11:16 CET by Thomas De Maesschalck
MobileGeeks met with Xiaomi's VP of International, Hugo Barra, and had a chat about the strategies the company uses to keep its pricing so low compared to brands like Apple and Samsung. One of Xiaomi's key techniques is to keep its portfolio very tight, coupled with a policy of keeping devices on shelves for 18 to 24 months. During the long shelve life, products typically go through three or four price cuts to keep consumer demand high. The company also exclusively advertises online and promises consumers a longer support timeframe than most competitors.
Many other manufacturers support and update their devices for a very short period of time. This is partly because they are pushing out new smartphones so often, and they obviously need to move on and shift focus away from older phones.

Because Xiaomi has such a tight portfolio and keeps devices for longer, they also support them for longer. Updates come on a more regular basis, while spare parts and other services stay alive for much longer than other manufacturers would opt for.
Further details can be read over here.

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