Xiaomi will forever limit its net profit margin from hardware business, which includes smartphones, IoT and lifestyle products, to a maximum of five per cent.
Xiaomi will forever limit its net profit margin from hardware business, which includes smartphones, IoT and lifestyle products, to a maximum of five per cent. The announcement was made at the Mi 6X launch event in Wuhan on April 25. Xiaomi co-founder and CEO Lei Jun wrote a letter to employees, stating the company will “find a way to return” the excess to users, if the margin crosses five per cent. Jun said Xiaomi has created a “triathlon” business model, which encompasses hardware, internet service and new retail.
“Aiming for large volumes with small profit margins will still result in suitable hardware profits for us in the long term. In addition, we are different from traditional hardware companies. Xiaomi is an internet company with smartphones and smart hardware connected by an IoT platform at its core,” the letter reads.
Xiaomi claims it has revolutionised the industry by offering cost-efficient products in a short span of time. “Previously, 10,000 mAh powerbanks were priced above 200 RMB, whereas our price point was 69 RMB. Mainstream air purifiers were priced at several thousand RMB, while we have managed to price our air purifiers within 1000 RMB,” Jun said.
Xiaomi Mi 6X (Mi A2) is priced starting at Yuan 1599 (Rs 16,000 approx) for the base model with 4GB RAM and 64GB storage. The 6GB RAM and 64GB storage option will cost Yuan 1799, which comes to Rs 18,990 plus in Indian currency. The higher-end 6GB RAM+128GB storage variant is priced at Yuan 1999, which in India amounts to Rs 21,100 plus.
In terms of specifications, Mi 6X comes with a 5.99-inches 18:9 FHD+ display, Qualcomm Snapdragon 660 processor and microSD card support. It gets dual rear 12MP+20MP cameras and a 20MP front shooter with LED flash as well. Mi 6X will also have a face recognition feature to unlock the phone along with some AI-powered features for the camera. Xiaomi Mi 6X is backed by a 3,010 battery with support for QuickCharge 3.0 technology.