Have you noticed that Xiaomi phones seem to be increasing bit by bit every year? Yes, the company is now making headlines for its increasing phone prices. So, what is the reason behind Xiaomi’s increasing phone prices?
The financial report for Q1 2022 showed that the average price of Xiaomi mobile phones has gone up by 14.1% year-on-year to Php 9,597. President Wang Xiang explained that the company is focusing on adding high-end technologies to its smartphones. This is why Xiaomi is making an effort to create mid-to-high-end mobile phones with enhanced features.
Even though Xiaomi’s entry-level products also have significant sales, the global average price of Xiaomi is still not rising. However, if you exclude entry-level smartphones, the average selling price of smartphones in the Chinese market is still growing rapidly. Wang Xiang also stated that as Xiaomi continues to apply new technologies to smartphones, it needs more high-end hardware support. This eventually leads to Xiaomi’s Increasing Phone Prices.
In Q1 2022, Xiaomi’s total revenue hit RMB 73.4 billion ($11 billion), and the company’s adjusted net profit hit RMB 2.9 billion ($435 million). Xiaomi’s smartphone business revenue was RMB 45.8 billion ($6.8 billion), and the global smartphone market shipped 38.5 million units. Xiaomi shipped nearly 4 million high-end smartphones in mainland China priced at RMB 3,000 ($450) or more.
In recent news, Counterpoint Research reported that Xiaomi users have crossed the 500 million mark. That places the company right next to Samsung and Apple. While Xiaomi has been performing very well in the Indian smartphone market, it recently lost its position to Samsung.