07 March 2019
Xiaomi had first rolled out its IPO last year, which had led to speculations that the company will have to increase the prices of its phone to make it's business more profitable. At the time, the company was quick to debunk such speculations and had assured fans that it would not increase the profit margin of its phones above 5%. However now the company’s CEO has stated that Xiaomi smartphones could become costlier.
Lei Jun, CEO and co-founder of the company stated recently, “We want to get rid of the reputation that our smartphones cost less than 2,000 yuan (about $300). We want to invest more and make better products. In the future, our smartphones could become more expensive, not much but slightly more expensive”.
During a recent interview, Lei Jun has revealed that he had told the staff that the Xiaomi Mi 9 could be the last flagship to be offered for less than 3,000 yuan (about $446). The company has spun off the Redmi brand, which will offer more economical products, while Xiaomi’s Mi line will be priced higher.
Xiaomi has emerged as the number one brand in the fastest growing smartphone market India, as well as other global markets. However, the company has been unable to make a space for itself in the premium segment as yet. By spinning off the Redmi brand the company will be able to focus more on the premium segment under the Mi brand.