AsiaSoutheast AsiaWhy is Xiaomi or Mi Smartphones So Cheap Even With High Specs?

Why is Xiaomi or Mi Smartphones So Cheap Even With High Specs?

Xiaomi phones are one of the most owned phones in our country. Xiaomi , also known as Mi,  is a privately owned company which designs and develops android based smart phones. Currently, it is also making fitness trackers.

About the company:

Xiaomi is a China based company that has his headquarters in Beijing. It released its first smart phone in August 2011 and is now China’s largest smart phone company. Apart from selling smart phones, it has expanded its business by indulging in designing of fitness bands, TV, smart home design ecosystem. The company entered in many countries including India, Malaysia, Singapore, South Africa and Indonesia. Lei Jun is the founder and CEO of the company.

The range of smart phones sold by the company includes Mi series, Mi note series, Mi Max series and Redmi series. Apart from this, the company also offers laptops and tablets.

The latest model:

Mi max 3 is Xiaomi’s latest mobile that is available in the market. The phone was launched in July 2018 and it has 6.9 inch touch screen display. The phone has 1.8GHz octa-core Snapdragon 636 processor and has 4 GB of RAM. Smartphone comes with 64 GB storage which can be expanded up to 256GB by suing SD Card. This phone also has 12MB primary camera and 8MB front camera. It is a dual sim phone.

Apart from just Mi max 3, most of the Xiaomi phones comes with lot of specifications, including large internal space, more RAM, good camera, high processor speed etc. And the best part about this is that, these phones aren’t even expensive.

Looking at the other smart phone companies like Samsung, Apple, Htc, one plus etc. These companies offer phones which have higher specifications but are quite expensive depending upon the specifications that it offers. Unlike Mi phones, which are quite cheaper, that’s what makes these phones unique. One can easily afford the smart phones along and can enjoy all the high level of specifications at the same time and that is the reason why most of the people these days have Mi phones.

While purchasing a smart phone, a customer looks for a phone that is packed with all the specifications and at the same time is pocket friendly also. So, it becomes very important to maintain a complete balance between both the things, which the company is already doing.

But have you ever thought that what are the reasons that make Xiaomi phones cheaper than others?

1. Online sale

Xiaomi does not indulge in advertisements which saves a lot of money. The company depends on social media work to make people aware about their latest releases. Another thing to be note is that the company does not approach the mediators like retailers etc. It sells its products on e-commerce websites like Flipkart, Amazon, Snapdeal etc so there exists no retailers margin.

2. Flash sales

Company does flash sales which mean that it sells a limited number of products which prevents the storage and maintenance cost of the same. As the phone is sold immediately, there are no amount of money involved in storage of stocks.

3. Large production size

The company’s production alignment and products platform across different countries is really significant.

4. The partner

Very few people know that the founding partners of Xiaomi  is Qualcomm. Qualcomm as we all know is famous for its powerful mobile processors. Now, the Mi phones uses Qualcomm processors, Xiaomi being the partner company with Qualcomm, gets the same powerful processor at cheaper price rates that helps to lower its production cost.

5. Expansion to other countries

The company is expanding its bases in many other countries. Countries like China, India, South east Asia, Brazil, Russia and Mexico uses Mi phones. So, through expansion in different countries, its sales would increase as more people will buy the known smart phone.

6. No promotion policy

Xiaomi doesn’t cater in promotions. Mi does not spend money on advertisements or promotions to trip in marketing, unlike other major Chinese smartphone companies like Vivo Oppo, Lenovo, One Plus, etc

7. Not just a mobile company

You must have noticed that when we buy a Xiaomi phone, it comes with certain number of apps that we do not require. These apps cannot be removes from the phone too. Over a period of time, people start using these applications and this is when the company makes money from the advertisements that are placed inside these apps. By this we can assume the large customer base the company holds.

8. Scarcity affects demand

In its initial phase the company made sure that their supply is lower which created a lot of acrimony amongst the consumers. This helped them gain publicity on the social media platforms.

9. Limited number of stocks

Each year the company releases a limited number of stock which creates a buzz among the consumers and thereby helps it to keep the prices down. Therefore, there is no extra costing associated with it.

10. YouTubers and Bloggers Support

Whenever the company launches any model they make sure that at that time the market is right. They always bring out new processors and technology in the market which gives them lot of appreciation from the bloggers and consumers as well.

11. Policies

Company’s products remain in all e-commerce marketplaces throughout the year before a new product is launched.  And then again they launch new gadgets in very less amount of time. Therefore, there exists a need for new smart phone every year.

12. Building phones locally

Another advantage that the company enjoys is that it builds its product hardware locally that is in China itself. This does not add to manufacturing cost upto a greater extent as compared to other smart phone companies.  Also, there is low cost of the Chinese labour. China has some lowest labour cost in the world.


Unlike other smart phone companies that are selling all kinds of high rated specifications, what makes Xiaomi unique in the smart phone market world is its cheaper price. And thats  what drives the consumers  as they look for a complete package for lesser price.

Hence, at the end we can say that Xiaomi has entered into the smartphone market with full force giving tough competition to other smartphone companies and can lead the market with its lower price rates attracting more and more customers in the coming time.

Disha Gupta
Disha Gupta
I believe that writing is the best way of expressing your thoughts and feelings. It's the most beautiful way of expressing what you cannot convey through speaking and that's what make me crazy about writing.

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