How fast and how low can the top of the line Android smartphone prices go?
Take a guess.
Android ICS handset with 4” WVGA display, 1.5 GHz dual core CPU, 1GB of RAM and 8 megapixel camera. The cheapest price you can get it for, today?
How about $200?
Yep – that is the price (1299 Yuan) that Xiaomi is selling its first generation “Millet” Android smartphone with MIUI Android interface, as of today, in China. Making way for the next generation quad-core Millet phone launch. With all the customers who bought the first Millet phone during the last two weeks eligible for $110 reimbursement.
Granted, Xiaomi is a smartphone vendor with a unique business model – making more or less built to order handsets and selling them mostly through their website. Adding additional over the top premium services for Millet phone owners, to boot. Sort of a cross between Dell of the 90’s and Amazon, in 21st century of smartphone market.
The business model allows Xiaomi to sell millions handsets at cost or even at a loss. With $200+ million financing they have received recently – Xiaomi can certainly afford thin margins and some serious losses as a price for market share.
For a while. As did Amazon and Dell in their early growth years.
On the other hand, if Asus can make quad-core Tegra 3 tablet with 7″ 1280×800 HD display for $199 – Xiaomi’s losses shouldn’t be that bad.
Huawei and ZTE must be seriously worried right now. And what this does to HTC’s China expansion plans, or Nokia’s Windows Phone 8 Lumia hopes in China…
Xiaomi totally screws things up for them.
If you liked the post, you might find these interesting too:
- New Xiaomi MI-2 Phone announced: Android 4.1 Jelly Bean, HD screen, 2GB of RAM, quad-core S4 CPU
- Xiaomi’s next MIUI smartphone could come with 720p screen, quad-core CPU, $313 price tag
- Xiaomi MI-2 for China Telecom will be available on January 26
- Xiaomi Mi-3 shows up in China with 5” 1080p screen, Qualcomm 800 2.3 GHz CPU and 3000 mAh battery
- Huawei Ascend D Quad and D Quad XL officially launching in late August