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Pinning rivals, director of Xiaomi says company is unable to charge $ 3,000 per smartphone

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While seeking to captivate the Indonesian public , Xiaomi remains strong in India, where it overtook Samsung in selling intermediaries in the last quarter.

The fact is that the prices of the company are very attractive, and this helps it to sell in volume, even though the South Korean is still able to make more money from its sales. However, it seems that there is no risk of the company growing eyes, since in an interview the Chinese director of Manu Kumar Jain – ruled out this possibility.

For him, Xiaomi would not sell a smartphone of $ 700 ($ 2,900) because there simply is no technology that makes a device cost all this , being the manufacturer perfectly capable of offering what the market has better at a much higher price in count.

He even jokes that the company might even think of such a product, but that it would never reach the market. Because? The company itself would never allow this kind of strategy to increase its profit:

 Can we make a $ 700 smartphone? Yes, we can price it that way, but we could not sell it because Xiaomi would not allow it. It is not part of our DNA to sell cell phones with scandalous profit margins. Recently, when the company became public, we made a commitment to limit the profit margin to 5% and we are committed to that. “

That is, Xiaomi fans can breathe a sigh of relief.

In addition, Manu also commented on the gigantic banks that some companies practice. And he says that if one day the devices of the manufacturer become more expensive, it will be to offer hardware compatible with innovations of the market:

 Many companies sell expensive phones because they have high margins. Our brand would never allow a unit profit of 60%, for example. We are not saying that we can not one day sell a $ 700 cell phone. Only if one day our devices make it expensive, it will be for the technological cost. “

Remember, the company recently launched the Pocophone F1 , which brings a Snapdragon 845 and has prices starting at $ 299 . That is, we are still far from seeing an expensive smartphone on the part of the Chinese.

And you, what did you think of the statement? Do you believe that Xiaomi will keep its philosophy of profit low by volume in the coming years? Tell us in the comments!

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