This is why Xiaomi smartphones are becoming more expensive

by admin, Saturday, 21 May 2022 (3 months ago)

Xiaomi recently released its quarterly financial report for the first quarter of 2022, showing that the average price of the Xiaomi ASP mobile phone increased by 14.1% year-on-year to RMB 1,189. As for the increasingly expensive Xiaomi mobile phone, President Wang Xiang told the conference call that high-tech Xiaomi technologies will be added to the smartphones. However, the company will also make efforts to create good medium and high quality mobile phones.

Xiaomi 12S Pro

Wang Xiang claims that sales of Xiaomi’s imported products are also very high. Thus, the global average price of Xiaomi is still not growing fast enough. If you exclude entry-level smartphones, you can see that the average selling price of smartphones in the Chinese market is still growing very fast.

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

Simply put, as Xiaomi continues to stack high-tech technologies, it has no choice but to increase its prices. In the first quarter of 2022, Xiaomi’s total revenue was RMB 73.4 billion ($ 11 billion), down 4.6% year-on-year. The company adjusted its net profit to RMB 2.9 billion ($ 435 million), down 52.9% year-on-year. Revenue from Xiaomi’s smartphone business was RMB 45.8 billion ($ 6.8 million) and the global smartphone market shipped 38.5 million units. Xiaomi has shipped nearly 4 million high-end smartphones to mainland China priced at RMB 3,000 ($ 450) or more.

Xiaomi now has over 500 million users

A few days ago, Counterpoint research published an interesting report on Xiaomi’s performance in the first quarter of 2022. According to the market research company, Xiaomi users exceeded the limit of 500 million. So it’s on the same line with players like Samsung and Apple. Xiaomi is doing very well in the Indian smartphone market, but recently lost its position to Samsung.

Xiaomi users

A large Xiaomi user base will allow the company to design more products, provide opportunities for better brand revenue and sell more IoT products. However, it is more interesting to take a look at the performance of the company in different positions and to understand how this brand could raise its recognition to a new level. If you remember, 10-11 years ago, Xiaomi was considered an economical smartphone maker. In addition, it could generate revenue from the brand only in selected markets, such as China. Now, this pioneering China-based smartphone maker has found the key to success in many other regions, such as India. In these markets, Xiaomi not only sells smartphones, but also offers various services (fintech, e-commerce, etc.) and IoT products.

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