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These factors are responsible for Poco F1ís effective pricing

07 September 2018 4

Xiaomi amazed everyone when it launched a budget-centric Snapdragon 845-powered smartphone in India under a new brand Poco. While, it’s unbelievable for the Indian buyers, it’s shattering for the competitors at the same time.

Technically, Poco F1 has its many foes but when it comes to price, the device sees no competitors around it. On the basis of the specifications, Poco F1 targets directly the OnePlus 6 which offers delights over the other big brands in its own way. OnePlus has long been considered as the flagship killer but of late, it started seeing some budding challengers.

While a manufacturer manages many trade-offs or balances everything, Xiaomi seems to have found no big hurdle while putting out a budget smartphone with high-end specifications.

It wasn’t difficult for Xiaomi to push a $300 Snapdragon 845-powered device into the market. And the question is how the company managed to do that? Well, that’s a question in everyone’s mind. So, Androidcentral talked to Poco’s head of product Jai Mani on how the brand pulled it off. Mani tells that the company’s goal was to hit the $300 price point as it thought it would make it interesting.

Poco has made some cost-conscious decisions so as to achieve its goal. For instance, the company dropped the idea of adding an AMOLED display. Also, NFC feature was cut down as it wasn’t a big deal in India. The choice of materials also helped the company to keep the high cost at bay as a polycarbonate back costs much less than a glass-based design. This is the hardware level management that the company has done to come to near to $300 for its F1 device but the key role was actually played by Xiaomi’s supply chain.

Jai Mani said the company sourced the main components for the Poco F1 from Xiaomi’s supply chain and this made a huge impact on the price. Something which is available commercially helped the company in making a completely new device at a completely aggressive price point. Also, Poco was able to leverage Xiaomi’s existing infrastructure to bring down the R&D costs for the F1.

The F1 uses the same display as the Mi 8 SE — hence the reason for the notch — and the same 12MP IMX363 rear camera module as the Mi Mix 2S.

Furthermore, it’s not just the manufacturing that Poco benefitted from Xiaomi’s scale. Poco also used Xiaomi’s logistics and distribution network, and more importantly, its service centers. Jai Mani noted, this actually “saved a lot of money.” Xiaomi has over 1,000 service centers across India and Poco customers will be able to access them for after-sales services.

All units sold in India are being assembled locally at Xiaomi factories, so this makes a bigger impact when pricing is concerned.

So, now your confusion might have been resolved about the fact how Xiaomi pulled off a $300 Snapdragon 845-powered smartphone.



These factors are responsible for Poco F1ís effective pricing
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