“I said internally that this might be the last time our price will be under RMB 3,000… In the future our phones might get more expensive—not a lot, but a little more expensive“, said Xiaomi co-founder and CEO, Lei Jun, according to a recent report. RMB 3,000 translates to roughly $445, so if that scares you, read along.
Xiaomi wants to change its status and the world’s perception over the company, as it no longer wants to have a reputation for producing cheap hardware. It latest flagship the Mi 9 has everything it needs to compete with other flagships. No wonder we called it “hot and powerful”.
Actually, we want to get rid of this reputation that our phones cost less than RMB 2,000. We want to invest more and make better products — Lei Jun
But it is exactly this approach that got Xiaomi where it is now, with a comfortable seat at a table that is not so big. With main markets in China and India, Xiaomi was able to leverage its policy by selling top-notch hardware for a price cheaper than those of its main Android competitors, not to mention Apple.
If this price increase will be negligible, within a single digit percentage, maybe the market will be able to handle it. Otherwise, Xiaomi might be gambling here. What do you think?