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Why does Xiaomi limit its profits to 5%?

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Why did Xiaomi pledge to keep their hardware profits below 5%? (The Story Behind Ep. 33).
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#TheStoryBehind #Analysis #Business

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17/05/2018

Xiaomiprofit5%percentfivenethardwarephonestrategyIPObillion10010servicesinternetservicemobilemargin

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टिप्पणियाँ 1 026
TechAltar
TechAltar 8 महीने पहले
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F Harrison
F Harrison 8 दिन पहले
TechAltar I bought the short-range projector for 2,000 Dollar, which looks like X-Box but can project on wall up like theater. Sony has an similar one, priced at 18,000 Dollar...
Cameron Norman
Cameron Norman 4 महीने पहले
Your videos are so well thought out my guy.
Gabriel Ambrocio
Gabriel Ambrocio 5 महीने पहले
TechAltar vmkk
luisivichin
luisivichin 3 दिन पहले
im using mi max 1. not really noticing ads. im using firefox with ublock then google aps. the cloud backup in xiaomi cloud is much better than google cloud. the os is very good second only to ios with cydia. you can disable almost all google aps without jailbreaking with the right aps.
Miles Jr
Miles Jr 6 दिन पहले
Xiaomi just desperatly wants to get in Samsung and Apple level. and Mi users really likes to brag. They are pretty annoying. And after watching this video I think Xiaomi's future is pretty dark
Bat-Erdene Altankhuyag
Bat-Erdene Altankhuyag 8 दिन पहले
I think this is win win business model don't you think?
ανδροιδ
ανδροιδ 11 दिन पहले
I have gone through the entire video and do still not know what PR stands for.
TremereTT
TremereTT 11 दिन पहले
Freemium is allways about having 10% of the users paying while 90% avoid payment. Look at Spotify. Also PR might be difficult to grasp for tech enthusiasts, but marketing is easy to understand as it's about mechanics. Make shitty software = creating a market for support and coaching Make randomly failing laptops = creating a marked for financial services like apple care... Make Minecraft updates exclusive to XBOX = make everyone that loved minecraft hate you, nourishing the deamon that secretly powers your business.
Democrazy!
Democrazy! 14 दिन पहले
That video should be negativ but i like xioami even more now
KapengBarako
KapengBarako 18 दिन पहले
You can just uninstall the Ads service with the Xiaomi ADB Fastboot Tool.
Pablo CB
Pablo CB 19 दिन पहले
Just trying to replicate Apple business model.... not so disruptive, isn’t it?
Yudo NeidaNo
Yudo NeidaNo 19 दिन पहले
"what you draw them with is what you draw them to."
Harekal
Harekal 26 दिन पहले
Xiaomi is my fav company for making smartphone
Yu weihao
Yu weihao 29 दिन पहले
AFAIK MIUI is pretty notorious in China because it pushes annoying ad.
Ciri Danis
Ciri Danis महीने पहले
I've found my new favorite channel... Greetings from Timor Leste!
Prabhat Panthee
Prabhat Panthee महीने पहले
amazing true story or i can say its fact just watched first video and i am already impressed
Anoop
Anoop महीने पहले
But subscriptions are by choice...its not forced...if I dont wanna use any of their stuff....how wud they make profit off of me?
Rupak Tudu
Rupak Tudu महीने पहले
Apple is a greedy phone brand.
Abel Abebe
Abel Abebe महीने पहले
You have the best sponsors dude
William Register
William Register 2 महीने पहले
5% Should be the global profit margin for all companies! Companies need to pay more to the employees!
Roko Krstičević
Roko Krstičević 2 महीने पहले
i love miui. i had to turn on usb debbuging experience was great.
Samarth Nagar
Samarth Nagar 2 महीने पहले
Today I got on more channel to watch😊😊
Akash Roy
Akash Roy 2 महीने पहले
I like english but bro plz u make video in hindi because world most use ful youtube market are india not a china. World best number 1 business income in india so bro plz make a video in hindi i mean indian national language.
halley oey
halley oey 2 महीने पहले
xiaomi is doing the same thing like your video whos sponsored. and i dont mind that at all, i just ignore it. coz their phone is so fairly priced. compare to other brand. maybe in the near future xiaomi can give their phone for free just like google and youtube.
Daniel Costa e Silva
Daniel Costa e Silva 2 महीने पहले
How do you manage to connect so well the video content with the advertisement in the end?
tomaka121
tomaka121 2 महीने पहले
lol no wonder after the last update the MIUI weather app asks permission to contacts goddamn it
אור מזרחי
אור מזרחי 2 महीने पहले
bit.ly/2qdIAU0
Joel Dong-Joe Suh
Joel Dong-Joe Suh 3 महीने पहले
But then why does XIAOMI create phones with Android One programs, doesn't this hurt their profit from internet services
N0Styl
N0Styl 3 महीने पहले
Wait, so, how do I deactivate the ads on my Xiaomi toothbrush ? Yeah, I mean, this video makes perfect sense.
GOD HIMSELF
GOD HIMSELF 3 महीने पहले
communism
Shy-boos
Shy-boos 3 महीने पहले
After this film I want to buy Xiaomi services to help them making phones so good and so cheap.
hoaian1
hoaian1 3 महीने पहले
The thing is, after I bought my xiaomi phone and enjoyed It. I start looking for stuffs related to the brand and walla... another customer was born.
Shaochen Xu
Shaochen Xu 3 महीने पहले
Kinda like micro-transactions in free games like Fortnite, League of legend. It's just smart business.
三日月宗近
三日月宗近 3 महीने पहले
Thanks to China,lots of people can enjoy the Internet easily
Aaron Bies
Aaron Bies 3 महीने पहले
[1:29] They keep spelling it like 小米 dw
Ghanshyam Kumar
Ghanshyam Kumar 3 महीने पहले
apple more than 200% profit..dominate world smartphone market it doesnot mean apple has best hardware but oneplus samsung proving better
Roger Rosas
Roger Rosas 3 महीने पहले
what does PR stands for?
MastaX
MastaX 3 महीने पहले
Any other very happy Redmi Note 5 users here? I love mine, its so much better than my aging Galaxy s6 edge plus I was using.
Horace Wong
Horace Wong 3 महीने पहले
Xiaomi=shit
Akil Jacob
Akil Jacob 3 महीने पहले
Fuck em, I have to wait 720 hours to unlock my own phone? I had 2 redmi note 3s and now a Redmi 5 plus and cant even unlock the phone, some people even have to wait 1440 hours!
Psyblader501
Psyblader501 3 महीने पहले
Use the free and open source VPN/ad blocker called "Blokada" to block any MIUI connections (and every other ad in Android). blokada.org/
Mick Mickymick
Mick Mickymick 3 महीने पहले
Your map is wrong, Taiwan is not part of China
Enigma's Podcast
Enigma's Podcast 4 महीने पहले
what is PR?
Jaime Duncan
Jaime Duncan 4 महीने पहले
Or sell the user info , the key of the model.
vikas dadhwal
vikas dadhwal 4 महीने पहले
7:07 to 7:28 best part!
squintero213
squintero213 4 महीने पहले
@5:20 what a croc of BS. Seriously, why do you want to put a bad image on this brand ? I find Xiaomi is an amazing company. They are giving a huge amount of jobs to people in china and india (a big % of women in such macho-dominant countries) , I have had xiaomi phones for a long time and I havent spent anything at all during ownership (as you suggest @2:35 ). Yes there is bloatware, and sowhat? Just dont use it, hide it in a folder away from your usual apps and thats gone and never opened, geez.. You know, not everyone is as easily brainwashed by bad companies like Apple or Samsung making really shitty products (check Louis Rossmann repair videos) and getting profit from customers getting some brain jerk-off pleasure. Chinese companies are really great to buy from, I order a lot of stuff from aliexpress and have always had a great customer service and attention to any defect if anything happens. I actually hope brands like Xiaomi and many others will continue to make a lot of profit and sink those brands that have been in the market offering shitty products and service.
vardhu VV
vardhu VV 4 महीने पहले
i Love Xiaomi
Shekhar Babu
Shekhar Babu 4 महीने पहले
Whatever MI. phones are very good. Better than branded phones and come cheaper..
Swapnil Bhadade
Swapnil Bhadade 4 महीने पहले
Good analysis sir
mikakami93
mikakami93 4 महीने पहले
Is it bad or good idea?
Gagan Narang
Gagan Narang 4 महीने पहले
that advertising in the end though
GriindGaming Norsk Gaming
GriindGaming Norsk Gaming 4 महीने पहले
... A Phone is a Device...
Creative Thinking
Creative Thinking 4 महीने पहले
What if we root Mi phones and change custom roms?
Michał Borski
Michał Borski 4 महीने पहले
maybe in China, I have xiaomi for a year and I do not use any of services or know about their existance
xSemtex
xSemtex 4 महीने पहले
Thats why they locks bootloaders. They just didnt want people to delete their apps, bloatware and other bullshit and thats why i rooted my redmi 4x and installed Ressurection Remix bcs i want cheap phone, but not the preinstalled bullcrap
Ted
Ted 4 महीने पहले
It limits it's countries to 5% too
이redford
이redford 4 महीने पहले
this is bowshit. no one buys xiami's new phone until custom rom came out. cuz they know there are back door for sure.
23 M
23 M 4 महीने पहले
coming to apple - - hardware is f©©©ing expensive, software is f©©©ing expensive tooo..... they just don't want any special tactics.... people just buy it..
Muhammad Irsyad
Muhammad Irsyad 4 महीने पहले
I think nowadays people buys xiaomi because of it's great specification in an affordable package. Also the community is kind of backlash the "internet things" as you mention in xiaomi as many of the user simply switch to another operating system that nearly no xiaomi apps installed on it. Also i think almost all of the xiaomi internet services is not available outside china.
Kiran kumar
Kiran kumar 4 महीने पहले
So if u buy mi phone u will get free ads and promotion frauding people 😬
DerParadonym
DerParadonym 4 महीने पहले
Miui positive: They think about services. themes, storage alternative to Google. Miui negative: They rebind the Google play services error reporting. When an app crashes, Xiaomi get's the error report, not the dev through google - even when this is where the app is from.
Arch I386
Arch I386 4 महीने पहले
I own a Xiaomi phone, but have removed the entire O.S and using a custom rom + Fdroid. Because what I really like from Xiaomi, is their cheap hardware.
Dominik Ri.
Dominik Ri. 4 महीने पहले
I think Xiaomi make good devices, I have a mi mix 2 as Daly driver. But I don't like the miui. I use it with custom ROMs
Bad genji Main
Bad genji Main 4 महीने पहले
So they can make fair prices
Kraflyn
Kraflyn 4 महीने पहले
audio... again....
Allen Naorem
Allen Naorem 4 महीने पहले
That's actually pretty smart. We get phones cheaper and they get their money too. A win-win situation.
Krishna Mohan
Krishna Mohan 4 महीने पहले
What Xiaomi should be doing is spinoff the high end phone segment as a subsidiary but a separate unit where Xiaomi makes good margins on phones that don't have that cheap Mi brand on them. Nobody buys a Mi flagship even if its better and cheaper than Iphone when it has that stupid Mi logo on it. Xiaomi parent should continue to focus on selling as many affordable phones as possible in the hope that people pay for internet services. Basically don't put all eggs in one basket.
余国平
余国平 4 महीने पहले
+Krishna Mohan I understand where you coming from. Myself grow up in an environment where there are zero Chinese brands available. Most of the reputable brands and premium brands are mainly from Us, Europe, Japan and Korea. Factually Europeans brands must sound European like Siemens, Philips and Maserati, Toyota, Mitsubishi for Japan and so on. We expect Chinese brands to sound Chinese. Stereotypical Chinese makes are always copies from elsewhere. Looking at current Chinese mobile, I would think they make good progress nowadays by going into R & D. Xiaomi had huge presence in India, I'm not sure if it true Indian consumer is kinda price conscious, even Apple struggled in India. Huawei is one of the big three in Europe along with Samsung and Apple. Surely build quality of these brands should be good which justify their market share. Sad to say despite what these Chinese companies do, they always being brand as copies. Apple is no longer innovative compare to Steve Job time. Samsung S and Note series are mild evolution of their predecessors. There are consumers willing to pay for that exorbitant price (which I'm fine. It's not my money anyway). Annoying part is there are brand snob really convince only certain smartphone manufacturer are only allow to compete in high end segment.
Krishna Mohan
Krishna Mohan 4 महीने पहले
+余国平 I'm not saying anything bad about Chinese. I'm just saying our tastes don't match. Chinese phones really have a branding problem outside China. Especially because of how they name their phones.
余国平
余国平 4 महीने पहले
I'm from Singapore. I've friends from China as well, not sure how about you. Your description of PRC Chinese don't fit my encounter with them. I've been to some cities in China, they are just another cities in our planet earth.
Krishna Mohan
Krishna Mohan 4 महीने पहले
+余国平 you are Chinese bro. China is a different universe for us out here.
余国平
余国平 4 महीने पहले
I see nothing embarrassing about having Mi logo on it, probably a badge snob do.
Ryuyaryuu Rabuwww
Ryuyaryuu Rabuwww 4 महीने पहले
hell yeah, great insights as always
Mayank Singh
Mayank Singh 4 महीने पहले
using redmi note 5 pro with custom rom using stock android
little red curious
little red curious 4 महीने पहले
Stock android mehnn
little red curious
little red curious 4 महीने पहले
Haha aqua.
Ulukai Azgard
Ulukai Azgard 4 महीने पहले
I dont think you understand Chinese politics and most importantly Chinese corporate law. Please don't try to lecture people on things you don't understand yourself.
Chibueze Ifeanyi
Chibueze Ifeanyi 4 महीने पहले
Your content iswonderful
HydroBandit
HydroBandit 4 महीने पहले
Honor and Huawei pls. Why would they release HonorPlay with almost the same performance as the P20?
Mike M
Mike M 4 महीने पहले
So protectionism and censorship keeps them afloat basically.
Cliff Gamer
Cliff Gamer 5 महीने पहले
Atleast they are not as greedy as the American companies like Apple who remove the headphone jack and force people to buy hundreds of dongles. They removed the ports from their laptops and regularly slow down old phones.
Feel good Inc.
Feel good Inc. 4 दिन पहले
From what I've seen in this video, they seem like they're operating in a bubble. Only succeeding because of china's anti-competitive laws creating a bubble where googles superior services aren't allowed. I doubt they'll ever achieve success in a country that has google unless they make some serious changes to their business.
Feel good Inc.
Feel good Inc. 4 दिन पहले
Xiaomi was correctly betting that fans of communism wouldn't use common sense or do research... because that's the only way someone would be a fan of communism lol I prefer iPhone x personally, it's expensive but you're paying for the best
Aitor Gómez
Aitor Gómez 25 दिन पहले
+Corktail the main problem with the battery thing is that, as an user, you had no way to choose not to throttle the system if you didn't care about battery life. Apple takes a lot of decisions on their own, which is sometimes good for people that doesn't know that much about technology but certainly harmful most of the time.
Corktail
Corktail महीने पहले
about the old phone slowing down thing. lithium batteries dont last forever, and since apple doesnt let you remove the battery, they are slowing down the older phones so the battery can still handle it and doesnt die unexpectedly. they are actually doing customers a favor by letting their phones last longer. but i agree that apple is an ass of a company
asd fgh
asd fgh महीने पहले
thats because they can't afford to be greedy, they absolutely are. Especially because apple is greedy, and xiaomi aspires to be an apple clone
Ervin
Ervin 5 महीने पहले
well, its a win:win for us and them, i guess.
Shivam Aroraa
Shivam Aroraa 5 महीने पहले
i have been using xiaomi since two years, never seen any ads or used any specific xiaomi service
Pravoslavni Dildo
Pravoslavni Dildo 5 महीने पहले
Do you remember when I told you to get a better microphone over a year ago when you had a few hundred subscribers? I wrote that using a different account though.
maxlol0
maxlol0 5 महीने पहले
i think what you said is not true. i didn't know there's such a 5% thing before watching your video. so it is definitely not a PR thing. nobody buys xiaomi phone based on the 5% profit thingy.
Erasyl Yesken
Erasyl Yesken 5 महीने पहले
Is this means that they don't have profit from Android one phones ?
Slavko Tonković
Slavko Tonković 5 महीने पहले
This makes no sense, as xiaomi makes it pretty easy to put on a custom ROM but I might misunderstand it
FellTheSky
FellTheSky 5 महीने पहले
their UI is horrendous.
manohar reddy
manohar reddy 5 महीने पहले
Miui is shit
Rock wilson
Rock wilson 5 महीने पहले
we people are badass, arent we?
c a t
c a t 5 महीने पहले
Nothing in China is actually communist anyway.
Eli Malinsky
Eli Malinsky 5 महीने पहले
This is how the game console industry works. Make a loss on hardware but a profit on game licences.
Lautaro Quiroga
Lautaro Quiroga 5 महीने पहले
Whether or not is benign they still make great things that are cheaper than the rest, so... Just the delivery of said products make people change their minds and say "wait a minute, I can have 3/4 of a flagship for 1/2+ the price?".
Henk Poley
Henk Poley 5 महीने पहले
It could be nice if Xiaomi decided to add financial education and finance tracking apps of their own making to their phones :P
sdq sdq
sdq sdq 5 महीने पहले
for real ? then why are their flagship so expensive
Ganji Raja
Ganji Raja 5 महीने पहले
I think your wrong dude..... Xiaomi have other goals than making money....they want to make a great brand thats it.....
Ganji Raja
Ganji Raja 4 महीने पहले
+Sunny thank you......
Sunny
Sunny 4 महीने पहले
Ha tera chacha h na xiaomi, jo free me dega
DBarks38
DBarks38 5 महीने पहले
Their BM and revenues relies on the embargo of free software on the chinese market imposed by a communist government. This company doesn't qualify for a free market. They would never get so big if china haven't set this embargo.
De CapitanFluffy
De CapitanFluffy 5 महीने पहले
2:06 Apple is so good at this tactic. They make so much money from selling hardware as well as internet services. A few good example is iTunes Music, iCloud Service, App store(30% of profit goes to Apple). They have full control of their hardware and software which makes Apple so successful in the tech market.
Vansh Vardhan Jha
Vansh Vardhan Jha 5 महीने पहले
very high quality and well researched video with great graphics... Thanks.
Ayaaz Ahmed
Ayaaz Ahmed 5 महीने पहले
This video doesn't make sense because a phone I am planning to buy(Redmi 6 pro or Mi A2 Lite) is a cheap phone with android 8.1 software
Th 702
Th 702 5 महीने पहले
7:16 oups i guess they fucked up one that one :( the guy that agreed the posting of that Vote-Tweet must have been fired the minute after he posted that ahhaha
PROfromCRO
PROfromCRO 5 महीने पहले
This is the best thing that can happen to a smart person like me. I buy their cheap ass (but great for the price) hardware, and then uninstall their shitty MIUI ROM and install lineage OS and then ROOT the phone.
GlykoGen
GlykoGen 5 महीने पहले
It should be pronounced as "syaoh me", I mean not "shyaoh me"
Bibis Product Placements
Bibis Product Placements 5 महीने पहले
1. buy cheap Xiaomi phone 2. Flash LineageOS 3. Profit
PalmOasisOff
PalmOasisOff 5 महीने पहले
Not a very working business plan, didn't even know that xiaomi has services in their apps and all the ads were turned off
MadAnili
MadAnili 5 महीने पहले
Have xiaomi, never paid anything since bought (except apps in google play), deactivated the ads and it's a good phone Edit: never bought any xiaomi sevice i mean
Wu Chin Shan
Wu Chin Shan 5 महीने पहले
Great video. Given Xiaomi's strategy, I wonder why they even bother with Android One versions of their phones. And which of their models they choose to have A1 edition is also strange.
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