Xiaomi seems to want something away from the image that only cheap devices can be built. Co-founder Lei Jun said that Xiaomi’s devices could become more expensive in the future. Not much, but prices will rise.
Xiaomi: Invest more money in R & D
The company now wants to invest more money in research and present more innovations. As a result, smartphone prices will rise. The Mi 9 could be the last model to sell at such an aggressive price, so that will be over soon.
Such a development is completely normal and we have seen it in recent years with many major manufacturers. Samsung also once pursued the strategy to increase market share with low prices before selling ceramic flagships for up to 1600 euros, as it did now.
There are many examples, including Huawei, and OnePlus has long been out of the aggressive price zone. In the beginning, it is important to increase the market share and to make the brand known, then at some point, you have to earn some more money with it.
Xiaomi: Change will not be easy
However, this change is not always easy, because you often win the mass market, but loses many fans who have got to know the company so. At the same time, you have to score with innovations that show why you should now spend more money on a Xiaomi smartphone than before.
Such a change brings many opportunities, but the risk of failure is also present. At the same time, it creates space for new entrants, and Xiaomi’s “Pocophone” brand has directly ensured that a company from within its own ranks holds this position.
I look forward to the development of Xiaomi, a price increase is never easy for companies that have made a name for themselves with attractive prices. We will probably experience this change in 2020 and 2021.