Categories: Gadgets

Xiaomi will never earn more than 5% for each device sold, Lei Jun’s word

Taking advantage of presentation of the new Mi 6X just a couple of hours ago , Lei Jun, CEO of…

Xiaomi will never earn more than 5% for each device sold, Lei Jun's word

Taking advantage of presentation of the new Mi 6X just a couple of hours ago , Lei Jun, CEO of Xiaomi, has issued a statement through the official blog of the firm , which details the future plans of the company, which in this last year has achieved the greatest growth in its history as a company dedicated to the creation of electronic devices.

In the publication, Lei Jun ensures Xiaomi’s commitment to its users, as well as the humble philosophy of the brand, confirming that the profit margin of the company’s hardware division will never exceed 5%.

Xiaomi’s profit margin will not exceed 5%

Xiaomi will never earn more than 5% for each device sold, Lei Jun's word

Xiaomi will never earn more than 5% for each device sold, Lei Jun's word

Last week, we gave a review of the profits of the main telephone companies worldwide , with brands such as Apple and Samsung in the lead, earning an estimated average of $ 151 and $ 31 respectively for each device sold. Xiaomi, however, kept to the tail with respect to the other brands, pocketing only $ 2 for each sale.

Today, the CEO and co-founder of the company, says that two days ago the board of directors of Xiaomi approved the suggestion to make the firm never exceeds 5% net profit for each device sold . This philosophy, moreover, applies both to the sale of smartphones as entertainment devices, lifestyle and Internet of Things . In case of exceeding this margin, the company will find some way to return the excess to the users.

Xiaomi will never earn more than 5% for each device sold, Lei Jun's word

Xiaomi will never earn more than 5% for each device sold, Lei Jun's word

According to the brand, this humble philosophy allows them to earn the trust and support from the users , and thus aim for large sales volumes with reduced profit margins, which will generate adequate long-term profits.

Jun also ensures that, for the past few years, Xiaomi’s strategy has been constantly challenged by the competition , and although they have faced major obstacles, today is the only firm that has achieved positive growth in the midst of a crisis in which the sales of smartphones plummeted.

Be that as it may, the co-founder of the Chinese giant, which has recently completed eight years of life, the brand will maintain the same philosophy that it has been using since its first day of life , offering high quality devices at honest prices . After all, it is more than proven that this is a strategy that ends up benefiting both users and the company itself.

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