Everyone who likes Xiaomi is used to great quality at a low price. Recently, the company introduced its new flagship Xiaomi Mi 10 and Xiaomi Mi 10 Pro. In addition to their brilliant performance, they also attract an extraordinarily high price that we have not been accustomed to from Xiaomi before.
The fans have triggered many negative responses to Xiaomi regarding the price of the new flagship, which is now trying to explain the CFO of the company, Show Zi Chew.
They keep their word
Xiaomi still promised in 2018 that theirs hardware gain never exceeds 5%. And they kept that word for the flagship Xiaomi Mi 10 and Mi 10 Pro. Given the unexpectedly high price we are not used to at Xiaomi, this is a surprise to many.
But the opposite is true, and this fact is also confirmed and explained by the international president of the company, Show Zi Chew.
We announced our 2019 results today! I wrote a short note to our Mi Fans, talking about our R&D investments to bring you the most cutting-edge tech and fulfilling our pledge of not making more than 5% net income margins on our hardware business. Please take some time to read it! pic.twitter.com/PUADxP9Ymd
- Shou Zi Chew (@ShouZiChew) March 31, 2020
He sent a letter to the world and Xiaomi enthusiasts via Twitter. In the letter he described the technological innovations that the Mi 10 series brought, but also thanks to all fans and enthusiasts.
He also states in the letter that he is proud to have followed the word a net profit by page hardware margin for this smartphone not more than 5%. But in reality this means them hardware component margin such as processors, RAM memory, cameras, and others does not exceed the above 5% threshold.
For example, there is no margin for the development of the smartphone itself, software, or overall design. He added that in 2019 this hardware margin was even less than 1%.
He also writes that as a company they will always try to deliver the best products at the best price, whatever price range you choose. You can read the full letter in the Twitter post above.
Huge investment and progress
In the Show Zi Chew, it also states that in 2019, the company invested more than $ 1 billion in R&D, ie research and development. This high budget rose to $ 2020 billion in 1,4.
In another post on the official Xiaomi Twitter profile, the company thanks the fans for their great achievements in 2019.
In the contribution Xiaomi points out, for example, the increase in profits of the company, where almost half were users, respectively. Western Europe profits. In 2019, foreign trade profit was 91,4 billion Chinese RMB, a 30,4% year-on-year increase.
In the fourth quarter of 2019, foreign trade earnings reached RMB 26,4 billion, up 40,7% year on year. Xiaomi has had the most successful year in its 10th history.
In 2019, Xiaomi's total revenue exceeded RMB 200 billion for the first time ever. In Q4 2019, we achieved a total revenue of RMB 56.5 billion, the best performing quarter of the year.
- Xiaomi (@Xiaomi) March 31, 2020
These are huge successes for Xiaomi and we just wish them. What do you think? Is the price for the new Mi 10 series exaggerated?
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