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Xiaomi has a very interesting pricing strategy. Generally speaking, they tend to be lower margin, but also they really cut supplier margin to the bone. They l
by Kirby64 7y ago
Xiaomi has a very interesting pricing strategy. Generally speaking, they tend to be lower margin, but also they really cut supplier margin to the bone. They love pitting competitors against each other for the same socket (promising high volume, but ultimately you get beat out by someone else). It's hard to turn down their promised volume numbers. I wouldn't be surprised if they're getting the 865 cheaper than other players like Samsung.
- baybal2 7y agoXiao is loosing money on most of its phones. Phones are a small net loss for them. They recoup the cost big time on accessories, and other merchandise. It didn't work in India (biggest market outside of China,) where BBK rules supreme: People will buy the best deal phone, but will not sign onto their overpriced smart vacuum cleaners.
- Kirby64 7y agoFunny you mention smart vacuum cleaners. Xiaomi vacuums (the roborock ones) are some of the best value to feature robot vacuums out there. The only thing that beats them on the high end is the iRobot latest, which costs like 2-3x as much.
- dehrmann 7y agoSounds exactly like how Walmart works with suppliers.