At a recent press event, Xiaomi founder Lin Jun revealed why the company has no plans to create waterproof phones. Jun explained there are several factors, including the much higher manufacturing cost. A waterproof phone would require Xiaomi to jack up prices by 20 to 30 percent, which is quite a lot considering the company focuses on offering low-cost premium phones.
Furthermore, Jun also remarked that waterproof phones create a false sense of security, as any damage phones receive could compromise the water proofing:
According to Jun during a recent press event, waterproofing his company’s phones has the potential to backfire, since any damage phones receive could compromise the water protection they have. Even when the damage is not nearly as significant as a cracked screen or broken camera module, that protection could fade.