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Xiaomi may abandon the more budget-friendly ends of its market in the future: company CEO

The Mi 9 offers some proof that Xiaomi can do high-end too. (Source: Xiaomi)
The Mi 9 offers some proof that Xiaomi can do high-end too. (Source: Xiaomi)
Xiaomi has made its name by offering phones that could be seen as value-for-money in the past. However, its CEO, Lei Jun, has unveiled plans that involve the company turning its back on this strategy in the future. He has said that "this might be the last time our price will be under RMB 3,000 (about US$447)".

Xiaomi's CEO Lei Jun has advised the company's fans that the days of its brand's association with cost-effective hardware is over. The OEM has built a sizeable business out of targeting the mid-to-low tiers of the smartphone and tablet markets. However, Lei has indicated that those days may be over soon for the company.

This apparent move may be a bid for more effective revenue-building by the Chinese electronics firm. However, it seems that the company's image is at least as much a cause for concern for the executive and his staff. In an interview with TechNode, Lei stated: "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." This suggests that the model developed for phones such as the Galaxy S10-rivalling Mi 9, as well as the Mi Mix 3, is now the more desirable for the company.

Xiaomi's apparent direction for its future may be the rationale behind the establishment of the name Redmi as a sub-brand rather than a product line. Its first release, the Note 7, has been shown to compromise on durability in order to attract buyers with a 48+5MP rear camera for only US$150. On the other hand, Redmi has also indicated that higher-end devices under its name are also in the works. Therefore, it seems that Xiaomi's premium ambitions will extend to all areas of its business. Therefore, those looking for a decent budget-level phone may have to look to other names such as Realme or Vivo in the future.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 03 > Xiaomi may abandon the more budget-friendly ends of its market in the future: company CEO
Deirdre O Donnell, 2019-03- 8 (Update: 2019-03- 8)