After rolling out its first IPO last year, many had speculated over the fact that Xiaomi would in the future increase the prices of its phones in order to increase the profits. Xiaomi quickly went to counter such accusations by assuring all of its fans by stating that the company would not increase the profit margin of its phones above that of five percent. To this day, there have been questions with many people wondering how the Chinese brand will keep the prices of its phones so low while at the same time make healthy amounts of profit for its investors. And now, it seems that idea we feared to attach with Xiaomi might become reality.
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In fact, it is Xiaomi’s very own CEO, Lei Jun who has warned that the company’s phones might become more expensive as time progresses. One of the major reasons why this decision might end up being taken is to ward off accusations that Xiaomi produces cheap hardware. He stated :
“Actually, we want to get rid of this reputation that our phones cost less than 2,000 Yuan. We want to invest more and make better products.”
The CEO of the company further stated that he had actually informed his staff that this might actually be the very last time that the company’s phone prices will be under 3,000 Yuan. He also commented on the issue by saying that the prices of the phones in the future will lead to the phones being more expensive, however, just a little, not a lot.
Xiaomi phones will become more expensive
To say that such a scenario is surprising would not be fair on Xiaomi, as the company has been giving out subtle hints over a change in its pricing patterns for quite a while now – however subtle these hints might be. Just earlier in January, after we saw the launch of the Redmi Note 7, Xiaomi had promoted the base model of last year’s flagship Mi 8 for 2099 yuan ($310). There was a hint by Xiaomi’s product director, Wang Teng Thomas that after the cost-oriented Redmi series, the fans should not be anticipate any such crazy cheap deals anymore as the Mi brand will to high end. However, for now, the company does actually seem to be taking things relatively slow in this regard in particular.
