At the beginning of 2020, we witnessed the introduction of a new line of Xiaomi Mi 10 smartphones. Models from the new series My 10 a We 10 Pro brought hand in hand with premium equipment and a rapid increase in price.
This fact divided the fans of the Chinese giant into two imaginary camps. Some are proponents of an adequate price, while others do not identify with the big price jump. Most recently, Lei Jun commented that k there will be no further rise in prices.
The rise in price is over
To understand the reason for the sharp rise in the price of the latest flagship models, we need to know Xiaomi's pricing strategy. It has long been known that net profit from smartphones sold, margin, does not exceed 5 %.
Thus, the producer did not increase the price for the purpose of higher earnings, but was "forced" to do so. The components found in smartphones have undergone a relatively large price increase. One of the biggest expenses is definitely the processor, in this case Snapdragon 865 with support 5G connectivity.
Also gradual implementation of support 5G networks whether increased refresh rate causes a price increase. Although the official prices of smartphones after the show were really high, thanks to Chinese sellers and coupons, we can get them for more than favorable money.
Lei Jun, CEO of Xiaomi, recently said that a sharp rise in prices should not occur. According to the director, the Chinese giant wants to maintain the reputation of quality smartphones at a low price.
However, it must not be forgotten that the rise in price of smartphones is largely influenced by the component manufacturers themselves. One way or another, of course, we are very pleased with the pricing policy, and we are already eagerly awaiting the arrival of other models.
What do you think about the prices of phones from the production of the Chinese giant? Are you one of those Orthodox fans who understand the price increase or would you rather appreciate the same low prices as in previous years, at the expense of the latest technologies and parameters?
Feel free to write your findings in the discussion below the article. For many other interesting news not only from the world of smartphones, regularly follow our website, like our Facebook page and subscribe to articles in the email box.