Good News For Xiaomi Users! The Company Will Pay You Back If This Happens
Since the Chinese smartphone maker Xiaomi entered the market, it has brought down the already bigger tech giants that were established in the market way before them. In fact, after 3 years of debuting in the Indian market, the company now had emerged as the number one player, beating Samsung.
As the Xiaomi users are not already feeling lucky, the company has now given them one more reason to cheer. The company has made an unconventional pledge, that is, if the company makes more profit in the coming time then some chunk of the profits will also be shared among the Xiaomi smartphone users.
The company has made an official statement clearing out that they will limit the net profit margin to just 5% after deducting the tax for smartphones, smart home devices and other hardware. Even after deducting this much percentage of the profit if they will still get more profit at the end of the calendar year than the excess amount will be given to its users.
It’s hard to know exactly what percentage of excess profits the Chinese smartphone maker is talking about but here are some hints. Most of the smartphone companies make a huge amount of profit on their hardware.
Firms like LG and Samsung rely on component divisions and other consumer brands to record the bulk of the revenue that makes them profitable. More broadly, the competitive market means there’s not much money to claim in selling phones. Apple alone is estimated to make about 87% of all smartphone profits despite the fact that the 18% market share is what other smartphone makers.
This pledge aligns itself neatly with the company’s core focus on providing cutting-edge tech, or as close to, at affordable prices. Much has been said over the years of the bang-for-buck of its $150 Redmi range, while countless comparisons of its higher-end Mi phones and flagship products from Apple and Samsung have graced the internet.
Xiaomi’s market share had grown by over 70% over the previous quarter to touch 26.5%-2.4% points ahead of the Korean major, according to IDC.
Xiaomi has said previously stated that smartphones are just one part of its wider ecosystem which includes Xiaomi-branded smart home and “lifestyle” devices from third-parties, and most importantly the services that link all the hardware together. Those include services such as online video, e-commerce, financial products and other digital services.
What’s worked for Xiaomi, is its constant focus on the value-for-money proposition and a lean but superior product line-up.