This morning, Xiaomi founder, chairman and CEO Lei Jun attended the HICOOL Global Entrepreneurs Summit and delivered a keynote speech. According to the Beijing Daily, many Mi fans wonder whether Xiaomi products will increase in price once they enter the high-end market.
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The report pointed out that Lei Jun said that many people persuaded him to sell more expensively. But Xiaomi must use high efficiency to promote it, and will always adhere to the cost-effectiveness. No matter how high-end it is, it will be especially value-added and will also insist on doing the best. ‘After clarifying the mind, Xiaomi will definitely make the coolest products, instead of simply pursuing profit and profit growth.’
Lei Jun also reiterated that ‘in the future, we will continue to adhere to the ‘three iron rules’ that Xiaomi will never change: technology-oriented, cost-effectiveness-oriented, and the coolest products.
Xiaomi debuted on April 6, 2010. Although Xiaomi has never made a smartphone, they have a big dream: to make the world’s best smartphone at half the price, so that everyone can afford it.
What Is Xiaomi’s Profit Margin?
In addition, on the eve of Xiaomi’s IPO, on April 25, 2018, Lei Jun held a press conference at Wuhan University and announced a board resolution: Xiaomi’s hardware comprehensive net profit margin will never exceed 5%. If there is any excess, the Mi users will get it back fully.
Lei Jun said in a public speech on the 10th anniversary: ‘After Xiaomi went public, capital will definitely force Xiaomi to create ‘excess’ profits. I am confident that I can handle such pressure, but I am particularly worried. One day I will stop being the CEO, can Xiaomi’s management continue to make good products that are ‘touching people and at a good price’? After much deliberation, there is only one way: that is to solidify this mission in the form of legal documents – permanently limit the hardware net profit margin.’