Xiaomi president explains why his phone is getting more and more expensive

Xiaomi recently published its financial report for Q1/2022 showing that the average price of Xiaomi smartphones increased by 14.1% over the same period last year.

When asked why Xiaomi smartphones are getting more and more expensive, chairman Wang Xiang said that Xiaomi’s high-end technologies will be added to smartphones. However, the company will also make efforts to create mid-range to high-end smartphones.

Wang Xiang said that sales of Xiaomi products are also very large. As a result, Xiaomi’s global average price has not yet risen fast enough. If you exclude low-cost smartphones, you can see that the average selling price of smartphones in the Chinese market is still increasing very quickly.

Wang Xiang said: “As we apply more new technologies to smartphones, we need more support for high-end hardware. Thus, the average selling price of smartphones will continue to increase.”

Simply put, as Xiaomi continues to integrate high-end technologies, they have no choice but to raise prices.

In the first quarter of 2022, Xiaomi’s total revenue reached 11 billion USD, down 4.6% compared to the same period last year. The company’s adjusted net profit was $35 million, down 52.9% year-on-year. Revenue from Xiaomi’s smartphone business was $6.8 million and the global smartphone market shipped 38.5 million units. Xiaomi has shipped nearly 4 million high-end smartphones in mainland China with prices starting at $450 or more.

Not long ago, Counterpoint Research released an interesting report regarding Xiaomi’s performance in Q1/2022. According to a market research company, the number of Xiaomi users has surpassed the 500 million mark. Thus, Xiaomi has been able to compete with rivals such as Samsung and Apple. Xiaomi is currently doing very well in the Indian smartphone market but recently lost its position to Samsung.

The large Xiaomi user base will allow the company to design and sell more products. However, it will be more interesting to look at the company’s performance in different sectors and understand how the brand has taken its recognition to the next level. If you remember, 10-11 years ago, Xiaomi was only considered a low-cost smartphone manufacturer.

Now, the first-rate Chinese smartphone maker has found the key to success in many other regions, such as India. In those markets, Xiaomi not only sells smartphones but also provides various services (fintech, e-commerce, etc.) and IoT products.

Source: Gizchina