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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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TechAltar
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F Harrison
F Harrison 5 महीने 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 9 महीने पहले
Your videos are so well thought out my guy.
Recon Asian
Recon Asian 10 महीने पहले
TechAltar vmkk
Shyla Sree
Shyla Sree महीने पहले
Xiaomi is not for premium people it is providing best feathers in less money this what most people love
Lunatic Fringe
Lunatic Fringe महीने पहले
They don't want competition. high profit margin ,attract competition.
Prodromos Regalides
Prodromos Regalides महीने पहले
Xiaomi is the due punishment for companies like Apple and Samsung. If they were not so greedy reaching to the extremes, there would not be a Xiaomi reaching to the extreme lows. Do you even realize what Xiaomi says or this video says to us? That Xiaomi makes a very small profit, what else? That the "quality companies"were making 100 percent a few years ago, and that they now make minimum 200 percent and possibly as much 400 percent. Now, why would I be sympathetic to this as a consumer?
Prodromos Regalides
Prodromos Regalides महीने पहले
You can't raise your prices forever because markets demand it, or having everlasting increase in sales, because shareholders once read a book about economics and think they know a thing or two. There are only a finite number of consumers and a ceiling to sales. Even more so, when consumers start to realize you try to rbb them. When I hear that x company doesn't go well because it "only" sold 200 million devices and should have sold more , because only that would be an increase and thus likeable to the eyes of greedy and ignorant investors, it gets ridiculous.
masoud omer
masoud omer 2 महीने पहले
The adds can be disable
masoud omer
masoud omer 2 महीने पहले
There phones are very good I mean just look at poco f1 and redmie note 7 and mi 9
A. Nabih
A. Nabih 2 महीने पहले
5:25 As long as the eco system is cheap unlike apple, I have no objection.
Hayk Ghazaryan
Hayk Ghazaryan 3 महीने पहले
I can’t be the only one that thought the thumbnail was an ad
samuel mutegi
samuel mutegi 3 महीने पहले
for a moment I thought it was ed sheeren😄.
Siedahmed Abdallah
Siedahmed Abdallah 3 महीने पहले
Seriously, no one is doing the Ed sheeran joke
Goodborn
Goodborn 3 महीने पहले
Am I the only person who actually loves the MIUI? I got the Pocophone F1, and one of the reasons I wanted it was the MIUI, it has amazing features
Sage Park
Sage Park 3 महीने पहले
The only reason why Xiaomi and many other Chinese companies could go with this low profit model is because of Chinese government support. However, with Chinese economy showing major signs of decline, I wonder how much longer Chinese government can keep supporting many failing companies.
RUSure about that
RUSure about that 3 महीने पहले
I bought a xiaomi Android one phone , did I beat the system?
Malheirods
Malheirods 3 महीने पहले
Well, now I feel guilty. I bought a Poco and changed to custom ROM almost day one. So I basically hacked their business model. But even through this, I had to interact with Xiaomi "services". I needed their software to "unlock" my phone (first time ever I have to do this to install a ROM) and the reason why I had to change the ROM "almost" day one is that I had to wait 76 hours after the first try (purposedly, with a timer) to do so. Originally, it was 3 months but costumers complained. I guess it's a way to try to make costumers stay on MIUI and use their services. Too bad for them, MIUI, even the poco version, is just bad.
Ef0UR8awwW2-xkWKuAzx1xKhxauCBVSpQbmXGFFqfn1w
Ef0UR8awwW2-xkWKuAzx1xKhxauCBVSpQbmXGFFqfn1w 4 महीने पहले
The first simplify Chinese mobile phone and laptop company we hear is LENOVO ( meaning of united thinking ) , the second is Huawei ( meaning of south of china make from ) , The Third one is ZTE ( Zhong Hang) meaning of northern china grow larger , The Forth one is TP-link ( meaning of simply connected ) , The Fifth one is mini gun ( meaning of little Rice) in 6:43 we thought the people republic of china map was colony in North korea and North Vietnam not in Republic of China ( Taiwan ) however why kakazstian and nepal not part of People republic of china ? in 6:42 that why We prefer even buy a second hand Google pixel phone second generation or First Generation make ( united state of america branding ) When will united state of America create to block Wechat(Tencent) and alipay (Financial Ant) ? However We prefer Nokia inc or Bell Labs which is the oldest tech company and founder of internet , even or
Xenon
Xenon 4 महीने पहले
Install Blokada before the bootloader unlock timer runs out, and when it does, just flash a Xiaomi.eu ROM on it.
Kong
Kong 4 महीने पहले
xiaomi facebook then. facebook is down in rep. SOOOOO if xiaomi can get privacy done for their phone vs Chinese government then they will earn major points from everyone else. Xiao Mi = Xiao life then.
Guybrush Threepwood
Guybrush Threepwood 4 महीने पहले
capitalism only means that economy is based on private property... the opposite would be the state manages the capital
Azurite
Azurite 4 महीने पहले
Watching this on a mi A2 lite
Cesar Battistini Maziero
Cesar Battistini Maziero 4 महीने पहले
No one understood uhahuahuauhauha
yummy banana
yummy banana 4 महीने पहले
One question...Waht does PR mean??
Mohammad Shariq Abideen
Mohammad Shariq Abideen 4 महीने पहले
Bull.
M π
M π 4 महीने पहले
If you put custom rom on their hardware. The case is different. I agree that some people don't use custom roms. But, many do. I do.
blue lobster
blue lobster 4 महीने पहले
chinese phones are basically budget smart phone
RZ
RZ 4 महीने पहले
i think xiaomi is tring to make a good impact on china, as most people think that chinese products are just made to take all the money off someone
Lawmakers
Lawmakers 4 महीने पहले
I am using a xiaomi Phone right now and i am pleased 100%. Way better and cheaper than other chineze and american metal can!! P.S. We don't have any ads!!! Lier!!!
ButtonWalls
ButtonWalls 5 महीने पहले
So basically like consoles.
Abhay Shingi
Abhay Shingi 5 महीने पहले
Because that's the only way to survive in the market for long term. Providing value products to customers.
luisivichin
luisivichin 5 महीने 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 5 महीने 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 5 महीने पहले
I think this is win win business model don't you think?
Boyi Bolomi
Boyi Bolomi 5 महीने पहले
I have gone through the entire video and do still not know what PR stands for.
TremereTT
TremereTT 5 महीने 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.
Juba
Juba 5 महीने पहले
That video should be negativ but i like xioami even more now
KapengBarako
KapengBarako 5 महीने पहले
You can just uninstall the Ads service with the Xiaomi ADB Fastboot Tool.
Pablo CB
Pablo CB 5 महीने पहले
Just trying to replicate Apple business model.... not so disruptive, isn’t it?
Yudo NeidaNo
Yudo NeidaNo 5 महीने पहले
"what you draw them with is what you draw them to."
Harekal
Harekal 5 महीने पहले
Xiaomi is my fav company for making smartphone
Yu weihao
Yu weihao 6 महीने पहले
AFAIK MIUI is pretty notorious in China because it pushes annoying ad.
Ciri Danis
Ciri Danis 6 महीने पहले
I've found my new favorite channel... Greetings from Timor Leste!
Prabhat Panthee
Prabhat Panthee 6 महीने पहले
amazing true story or i can say its fact just watched first video and i am already impressed
Anoop
Anoop 6 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 6 महीने पहले
Apple is a greedy phone brand.
Abel Abebe
Abel Abebe 6 महीने पहले
You have the best sponsors dude
William Register
William Register 7 महीने पहले
5% Should be the global profit margin for all companies! Companies need to pay more to the employees!
Roko Krstičević
Roko Krstičević 7 महीने पहले
i love miui. i had to turn on usb debbuging experience was great.
Samarth Nagar
Samarth Nagar 7 महीने पहले
Today I got on more channel to watch😊😊
Akash Roy
Akash Roy 7 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 7 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 7 महीने पहले
How do you manage to connect so well the video content with the advertisement in the end?
tomaka121
tomaka121 7 महीने पहले
lol no wonder after the last update the MIUI weather app asks permission to contacts goddamn it
אור מזרחי
אור מזרחי 7 महीने पहले
bit.ly/2qdIAU0
Joel Dong-Joe Suh
Joel Dong-Joe Suh 8 महीने पहले
But then why does XIAOMI create phones with Android One programs, doesn't this hurt their profit from internet services
N0Styl
N0Styl 8 महीने पहले
Wait, so, how do I deactivate the ads on my Xiaomi toothbrush ? Yeah, I mean, this video makes perfect sense.
Rainbow6 Grinds
Rainbow6 Grinds 8 महीने पहले
communism
hoaian1
hoaian1 8 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 8 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 8 महीने पहले
Thanks to China,lots of people can enjoy the Internet easily
Aaron Bies
Aaron Bies 8 महीने पहले
[1:29] They keep spelling it like 小米 dw
Ghanshyam Kumar
Ghanshyam Kumar 8 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 8 महीने पहले
what does PR stands for?
MastaX
MastaX 8 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 8 महीने पहले
Xiaomi=shit
Akil Jacob
Akil Jacob 8 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!
Mick Mickymick
Mick Mickymick 9 महीने पहले
Your map is wrong, Taiwan is not part of China
Jaime Duncan
Jaime Duncan 9 महीने पहले
Or sell the user info , the key of the model.
vikas dadhwal
vikas dadhwal 9 महीने पहले
7:07 to 7:28 best part!
squintero213
squintero213 9 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 9 महीने पहले
i Love Xiaomi
Shekhar Babu
Shekhar Babu 9 महीने पहले
Whatever MI. phones are very good. Better than branded phones and come cheaper..
SB
SB 9 महीने पहले
Good analysis sir
mikakami93
mikakami93 9 महीने पहले
Is it bad or good idea?
GriindGaming Norsk Gaming
GriindGaming Norsk Gaming 9 महीने पहले
... A Phone is a Device...
Creative Thinking
Creative Thinking 9 महीने पहले
What if we root Mi phones and change custom roms?
Michał Borski
Michał Borski 9 महीने पहले
maybe in China, I have xiaomi for a year and I do not use any of services or know about their existance
SFFR
SFFR 9 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 9 महीने पहले
It limits it's countries to 5% too
이redford
이redford 9 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
23 9 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 9 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 9 महीने पहले
So if u buy mi phone u will get free ads and promotion frauding people 😬
DerParadonym
DerParadonym 9 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 9 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. 9 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 9 महीने पहले
So they can make fair prices
Kraflyn
Kraflyn 9 महीने पहले
audio... again....
Allen Naorem
Allen Naorem 9 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 9 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 9 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 9 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 9 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 9 महीने पहले
@余国平 you are Chinese bro. China is a different universe for us out here.
余国平
余国平 9 महीने पहले
I see nothing embarrassing about having Mi logo on it, probably a badge snob do.
Ryuyaryuu Rabuwww
Ryuyaryuu Rabuwww 10 महीने पहले
hell yeah, great insights as always
little red curious
little red curious 10 महीने पहले
Stock android mehnn
little red curious
little red curious 10 महीने पहले
Haha aqua.
Ulukai Azgard
Ulukai Azgard 10 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 10 महीने पहले
Your content iswonderful
Qimchi
Qimchi 10 महीने पहले
Honor and Huawei pls. Why would they release HonorPlay with almost the same performance as the P20?
Mike M
Mike M 10 महीने पहले
So protectionism and censorship keeps them afloat basically.
Alpha Delta X
Alpha Delta X 10 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.
cattysplat
cattysplat 3 महीने पहले
@Global Harmony Xiaomi wouldn't even exsist if Apple and Samsung were not so greedy. They are taking a huge chunk of the market the former megarich companies thought they had loyalty from. They are going to learn the hard way that people are not dumb enough to pay $1k doller phones when there is not much different from a $500 phone.
Dopamine
Dopamine 4 महीने पहले
@Xenon every brand that offers affordable brands can make some money in India lol, Google's doing better than shiaomi there by a large margin
Xenon
Xenon 4 महीने पहले
@Dopamine Fairly sure they're doing quite well in India.
Xenon
Xenon 4 महीने पहले
@Global Harmony Oh yeah? Show me how you can flash a ROM, block ads system-wide, access the underlying FS, or expand storage on your friend's iPhone 6. Any Android manufacturer is automatically less greedy than Apple because Android has far more user freedom by design.
RZ
RZ 4 महीने पहले
ahem apple
Ervin
Ervin 10 महीने पहले
well, its a win:win for us and them, i guess.
Shivam Aroraa
Shivam Aroraa 10 महीने पहले
i have been using xiaomi since two years, never seen any ads or used any specific xiaomi service
Wanted Marshmallow
Wanted Marshmallow 10 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 10 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.
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