Top 5 reasons: Why is Xiaomi so cheap even with high specs
Top 5 reasons why Xiaomi is so cheap:
1. Spend less on Product Marketing
Xiaomi does not spend as much money as another brand such as Samsung or Apple in marketing their product. They also only sell their phone online. Hence they could save a lot of money and make the phone really cheap for their customers. Top 5 reasons why Xiaomi is so cheap.
2. Fewer Employees more profits
Xiaomi only has around 18,000 employees while Samsung and Apple both have more than 100 thousand employees. Fewer employees mean less spending on the Human Resource and thus cheap products.
3. Spend plenty of money on design
The money that big smartphone manufacturer spends plenty of money on design. And what do the companies like Xiaomi do? They just copy it saving them the billion for design research.
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4. Spend less in R&D, Quality Assurance
The cost that smartphone companies like Samsung, LG, Apple spends on R&D, Quality Assurance is really high while Xiaomi on the other hand does not spend much on such thing which makes the manufacturing cheap and hence the smartphones of Xiaomi are cheap.
5. Quick & Large sized Production:
Xiaomi has today is their production alignment and products platform across different countries. Like established brands Samsung, Nokia, etc. – they offer nearly the same models in most of their in operation countries, which provides them the advantage to realize real economies of scale.
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