Why does Xiaomi limit its profits to 5%?

Why did Xiaomi pledge to keep their hardware profits below 5%? (The Story Behind Ep. 33).
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#TheStoryBehind #Analysis #Business

[@TechAltar]

I'm here to tell you all about this magical hair growth serum that helped me recover my hair (and my old logo) in just one day! jk my sponsor is Skillshare, please check them out skl.sh/techaltar2

[@asrarmanzoor2110]

I just wonder why it didn't grow pink 🤔🤔

[@put4558350]

Microsoft and apple also try to get profit after sale too. Thing like bing, window app and voice assistant .... or itune, app store, Siri and search deal.

[@jattclub]

I saw you bald yesterday. WTF Illuminati!!!!!

[@Rayuzan_M]

It's obvious that the video was recorded before he goes bald

[@maverickmadison7392]

best price for the hair serum pls XD

[@AbteilungsleiterinBeiAntifaEV]

1. buy cheap Xiaomi phone 2. Flash LineageOS 3. Profit

[@user-md3is4dq2d]

Just bought a mi 9t, lineage isnt available yet

[@monokendo]

so whats the difference? can i flash a galaxy s8 with this OS?

[@toetoegan8999]

@@monokendo the price bro thats the difference

[@monokendo]

@@toetoegan8999 i mean about the OS not the phone

[@toetoegan8999]

@@monokendo pretty sure you can then

[@Juanixtec]

*Buys a Xiaomi* *Installs a custom ROM* *Deletes MIUI and everything xiaomi related* Xiaomi: You weren't supposed to do that.

[@adgeifc]

Lmao

[@niveZz]

yes.

[@Figureight]

I'm a Xiaomi phone and product user. I've never used any of their premium services. I buy their hardware purely because it's cheap and good quality. If it was too pricey, I'd just find another cheap priced phone company.

[@cooldownboi3890]

Yes. Thats right.

[@watema3381]

Very surprised to see you here

[@abhishekdev258]

Same with me.

[@GameofRoms]

NOW I KNOW WHY I INSTALL CUSTOM ROMS LOL

[@SirAarthur]

wasnt expecting to see you here lmao

[@peesafpayper9688]

Thanks man, fan of yours. You helped breathe new life into my old phones

[@zone2478]

I hv been using xiaomi for 3 years and i dont even get ads once

[@tahirballikaya213]

try installing new software. nothing?

[@_altruistic_6869]

@@tahirballikaya213the only time my xiaomi phone displayed ads was when I was using the music player from xiaomi.... and that was only once

[@cooldownboi3890]

Lol me too

[@freeverse8516]

I only see adverts when I buy new xiaomi phone or I do factory reset then I disable lol.

[@vemundkremund3221]

Step one: Buy a Xiaomi phone Step two: root it and install stock android

[@czxdtn421]

I did just that.

[@tigrankhachaturian8983]

Except you can't anymore. At least me after spending like 20 hours and bricking my phone, and then spending another 5... It didn't work. At least for Xiaomi 8a. Back when I had mi 4a it was so goddamn easy, but they made it harder and harder ever since

[@Asad_Rangrezzz]

@@tigrankhachaturian8983 I have 8a dual and I didn't face any issue, bro just flash fastboot miui then install redmi 8 twrp not 8a.

[@LTCloud9]

That's actually pretty smart. We get phones cheaper and they get their money too. A win-win situation.

[@TitaniumTronic]

Ikr

[@vedaryan334]

Oh no

[@FIREBREATH1001]

One answer: But xiaomi phone install custom ROMs Instant value for money phone. :)

[@denchua]

jerry jacob As long as you keep buying xiaomi phones, it'll help keep their sales volumes up and costs low. :)

[@DanBujo]

jerry jacob was looking for this

[@RKtheNoob]

Using Resurrection remix on redmi note 4 ✌️✌️

[@aakeepasi]

Aospextended

[@RohKage]

Resurrection Remix on Redmi 1s , beat that :D

[@wieliamyeo796]

Some Company (****) makes 200% profit from their hardware. You know what I'm talking about.

[@KalmerVT]

Does it have the name of a fruit?

[@virendrakamble4210]

@@KalmerVT yeah! It does.

[@kimofrosty]

@@virendrakamble4210 Does it compare to Oranges?

[@rudrasingh6354]

@@kimofrosty no it doesnt

[@AnarchistMetalhead]

@@rudrasingh6354 do people have to regularly be reminded not to compare it to oranges?

[@AdilHusain]

What ads .?? U can easily turn off ads in Xiaomi phones by just turning off suggestions in the app settings .

[@athulpaulp]

Everything Tech by Adil Yes you can. But i still see ads on some of their apps like mi explorer even after turning it off. But I'm happy with what Xiaomi is providing for the price.

[@bannedgler]

Everything Tech by Adil i dont even have ads. inside my phone... unless inside my games...

[@coldisopropyl]

Basically the same strategy used by Microsoft on Windows 10. Windows occasionally shows suggestions (ads) in the Start Menu. It can be turned off, but it is profitable even if 50% of users turn it off, because it is just profits without any costs.

[@brosplit]

Yea, the settings are there, in fact it is in your face toggle. Makes me confused, does people dont open settings app?

[@Tofu3435]

Johnson C but windows is a paid os not even cheap, and coming with adware! Android and Linux are free and most of them are coming without ads.

[@0vinoth0kumar0]

Dat Segway though...👌

[@KimSkid2k]

Im in marketing, and this was pure class! Very nicely done! So well, I will sign up with skillshare now!

[@fromliamwithcare]

Got my like in the first five seconds!

[@soulreaperichig0]

Segue*

[@ArunKumarMalaysia]

I feel like you showing a side of the tech business that is so important but no one in the general cares or even know about... Thank you so much !

[@riyazpatan111]

please do videos on startups.. 1.success stories 2.failure stories 3.great founder/entrepreneur stories 4.how they raised funds 5.great business models and bad business models 6.list goes onnnn............... please consider my request.

[@BronzeLincolns81]

"what you draw them with is what you draw them to."

[@tonycurson8439]

This is why the Xiaomi Mi A1 is such great value. Good performance for the price and stock Android

[@4Ktoz4]

what about the headphone hiss sound? do you guys experience that on wired earphones/headphones?

[@coeurdepatatecraft]

not at all

[@Xperian13]

Paanicz the sounds are really good. Not very durable though. But hey, it's cheap as F. $10 for that quality, it's freaking bargain.

[@StillRenderFilm]

Paanicz Yep , I hear hiss on some headphone.

[@BharadwajGiridhar]

Everything is so great about this phone apart from the battery 😢😭

[@AtharzReview]

I love their MiUi (spelled, me, you I) simply awesome UI. Xiaomi listen to feature requests from the customers.

[@minakdaspriya4362]

I love your "Story Behind" series Marton! Wishing you the best with that new hairstyle and your full time project on youtube.

[@MrNettoon]

You also forgot one very KEY aspect of this. By having a larger margin of profits from internet services they might also get the valuation for being an internet company, having a market cap of 4-5x their revenue instead of 1-1.5x like most hardware companies.

[@sy-en]

That changed so smoothly

[@CosmicInfinity]

I keep coming back to this video to remind myself to never cheap out on products I use every day. Psst. I see a lot of people talking in the comments about buying a Xiaomi phone and flashing a custom ROM. People don't get the fact the enthusiasts make up a very small percentage of the market. 1 in 10000 people flashing a ROM isn't going to cut down profit. Besides, it's "one more thing to take care of" after you get a new phone.

[@DoyThinksThis]

That transition at the end was smooth AF

[@amanadwani9100]

WOW, the detail you put in your videos is amazing. Keep up the work man!

[@TihomirTachkovtrt]

I like your SkillShare pitch at the end.

[@boatygatling4782]

Hair.

[@namanjain5763]

Boaty Gatling he had shoot it before cutting his hair

[@airplaneplustrainguy8143]

Boaty Gatling he definitely needs hair

[@boiledfrog5739]

Boaty Gatling that's notch

[@ahmadjabareen4730]

This is some NVIDIA Hair work

[@robojesus666]

The message at the end is so nicely animated!

[@Playerfortunos]

Great video as always! Guess this one was in the works while you released the news!

[@Irnbruist]

such good content you‘re putting out! Thank you Sir

[@szamii]

Xiaomi is my fav company for making smartphone

[@LetsBringThePain]

so is this the last None Bald Martin video? 🤔

[@TechAltar]

Yeah!

[@djprojectus]

TechAltar What yeah? Even in this video you are bald! To baldly go where no youtuber has gone before!😆😉

[@augustuseuropa410]

Very informative. Thanks for posting.

[@shalabhpradhan529]

One of the best Tech you tube channel. Keep it up bro, more power to you :)

[@CEKROM]

I am always happy, when I see a new Video from your channel =D

[@jonizulo]

You are everywherrrr o-o

[@76XJK]

Du bist überall!

[@kenapa4726]

after MIUI 9 update, many ads in default app from MIUI. such as Mi folder (File Manager), Apps (like playstore, it's just this version of xiaomi), and others. Very different from the default explorer samsung. Ad-free, only a few built-in apps have ads. but xiaomi, just waw after i wonder there are ads that i accidentally tap in recent files.

[@AmorinMenezes99]

Unnamed You cand disable the ads. Google it! And that's easy to do.

[@ArturZygmunt]

Great video TechAltar - THANK YOU as always! PS You "can" personally recommend that Skillshare course OR you actually recommend it, because you've done it??

[@mrincrdible7248]

I really really love this channel, your analyses on technology & business is on another level been a fan since i found this channel as always GREAT VIDEO.

[@GGpat95]

Awesome video as always! You should definitely collab with ColdFusion!!

[@helltp]

So then what's up with the MI A1? It has Android One, how does it fit in this model?

[@abhijeetbaliga5198]

Informative video Martin! However, you could elaborate a little more on what their internet services are and how they make money. Keep up the work!!!

[@sinsoftomoru]

Thanks for the presentation. Great to see videos that make you think and learn something new.

[@stevo19451]

Happy for techalter to pursue his passion and make video full time. He explains the business aspects of tech well. He can also grow full hair in one day.

[@nayemshahanor3000]

But he lost his hair's ☹️

[@JPGarmay]

I think the poll resulted to Mi A1 😂

[@DrRich-mw4hu]

Awesome!!! Love your show. Thank you 😊

[@RandyWHorton]

Great info post as always and I was more comfortable with the old look and old logo for some reason 🙈

[@dreamofstone]

wow that was a smooth transition to skillshare :D

[@ShivamJha00]

Well what if users Flash custom Roms? All their profit margins are gone, isn't it?

[@angrydragonslayer]

Tech Store they're still outrunning inflation and have a sufficient margin above that to stay afloat on just hardware

[@leoblack8497]

That's why you get locked in fucking 360 hours

[@zignasihmasmas4598]

leo black Wait, I think they increased the waiting time

[@Caelo_music]

sweet animations, graphics and nice content really looking forward to every new video

[@admiralgeneralaladeen9056]

Fantastic Dissection! Subscriberd ✌🏼

[@-ThePharaoh-]

Hhhhhhh that was before you cut off your hair

[@BrandoLuis]

damn your hair grows fast

[@sizif717]

You are brilliant, dude! Keep the good work going!

[@danidaryaweesh]

Great video, learned a lot!

[@ROCKSTAR3291]

it's kind of like companies sell printers for cheap and want you to buy their overpriced ink cartridges right ?

[@feelslikebatman6091]

nah, you can use xiaomi phone without using their services, like rooting. but printer will constantly update their printer so 3rd party ink will not be usable.

[@ShivamSingh-jw8ey]

Why does Mi A1 has stock Android One ?

[@erriezzanslounge1380]

Shivam Singh it's an android one phone!

[@silverzero9524]

for marketing their hardware to users who hate miui maybe

[@homerblancaver6098]

I love your explanations. thank you for your videos!

[@TheDanielcs]

How do you manage to connect so well the video content with the advertisement in the end?

[@dparag14]

I'm using Xiaomi, & I've not paid for any service of theirs ever.

[@hyzack1001]

Par D its the ads you dumb

[@g4br9el]

Michael Johnson I've never seen an ad on my Xiaomi redmi note 3 and I've been using it for 3 years

[@silverzero9524]

there is on Mi explorer. I saw few in past few months other than them never seen any

[@JakobMusic]

Would it be a good idea then, to buy a Xiaomi phone, just root it and use a different OS?

[@uwinvidanage2252]

Jakob Music why would u do that miui is pretty much the best rom out there and you'll receive updates for upto 5 years

[@aviralrastogi]

Of course, this is the only thing that makes me even consider Xiaomi. Their devices have excellent dev support on XDA because they are affordable.

[@maverickmadison7392]

I would love to put an Ubuntu Linux and run natively on it, but its not an easy process

[@vivekbhagat5828]

Jakob Music yes it's good choice buy unlock bottloader flash lineage os etc voila completey new phone without shitty miui apps

[@uwinvidanage2252]

Vivek Bhagat boi y do ppl hate miui so much (I've used miui and turns out the bloatware are the Google apps )

[@ciridanis1421]

I've found my new favorite channel... Greetings from Timor Leste!

[@alessandrod.sanchez865]

is an audio upgrade coming any time soon?

[@gaspaider7392]

This is root city now!

[@Origami295]

I wish OnePlus would limit their profits to 5% . OnePlus 6 is a pretty good phone with the few negatives like the increasing price , mediocre camera ,glass back without wireless charging and no IP rating .

[@scorpio9ification]

You're shortsighted if you sum up the new OnePlus 6 only to that sum of 'defects'. Is the increase in price meaningful? The OnePlus 5t goes for 599E right now, the 6 goes for 519E for the cheapest version and 569E for the medium range. Mediocre camera? Really? If you need more than that camera provides than you must be a professional shooter. Go for the P20 Pro if you want the greatest camera. No IP Rating? It's splash and rain proof last time I checked. If you like to take showers with your phone just pick something else. And regarding wireless charging, what do you prefer..to not have to plug your device in and charge it in 3 hours or plug the cable in and have it fully charged in 30 minutes?

[@Spast58]

I am pretty sure oneplus had a very small profit margin aswell. You really cant judge a price increase based on the features of the phone. its just scratching the surface of whats really going on behind the scenes there could be 1000 reasons. But generally i agree: its striving away from what it was, op6 is too expensive to be flagship killer but not good enough to be a flagship. now its just the slightly cheaper, slightly worse flagship which has to compete with the real heavy hitters from 3 months ago that have their prices dropped

[@Origami295]

bigut00bcelelry the place where you live must have really fucked up pricing if the 5t is more expensive than the the 6 . And anyways the 5t has been out of stock since the last few weeks so that point is kind of redundant . The Camera is mediocre compared against the competition which include the likes of pixel 2 and galaxy s9 . Why have a glass back when you're not going to include wireless charging ? So that you can break the phone more easily ? If they are gonna have to have a glass back , we should at least get the advantages of glass and not only the disadvantages ( I'm not mentioning the looks , because that is incredibly subjective ). And what does splash and rain proof mean exactly mean exactly ? It will survive a few drops of water ? At least with an IP rating you have a guarantee . Rain proof ? Maybe very light rain ? I wouldn't put too much confidence in OnePlus's claims

[@Origami295]

Rakib Hasan you can't buy a OnePlus 5t now . OnePlus has stopped selling it .

[@venomspectre5935]

You forgot the notch

[@AshtonSnapp]

“Congratulations! Your bullshit detectors are working.” I love this phrase, I need to use it some day.

[@liudaniel8386]

hi,do you know anything about the company smartisan and whats your opinion on his new product TNT

[@randolpascano9613]

Currently using Redmi 5a and this is what I can tell you. Xiaomi is earning money from Google, Microsoft amd other internet companies. Not being able to uninstall Google & Microsoft Apps forces users to use these apps which means money to Google and later to Xiaomi.

[@jaseaquino]

This is equivalent to adding a bunch of Chinese bloatware apps (Baidu keyboard, Baidu search, Sina Weibo, etc.) on their Chinese versions of their phones at least the Global version have just Google and Microsoft apps.

[@samueltulach]

Me: Yey! New xiaomi arrived! Me 3 second later: *Unlocking bootloader and installing custom rom*

[@silverzero9524]

y dude? i tried bend test first and stopped after 15 sec when my device actually got bent

[@camieljansen5504]

Man this is great. Thanks for this!

[@thiagocamargoalima]

Your point of view merges tech and business. Besides, it's always very accurate and well put! Congratulations!

[@satinderkaur8145]

Well , chinese manufacturers make cheap smartphones that those who cant afford a good smartphone , can ...at a cheap price.They are helping the world unite . I am an Indian and where you might asume me to hate chinese companies , but I dont because not everybody is born so rich and they are helping their consumers by creating good quality products for them at a cheap price. Also most people don't care about their money making strategies as long as it doesn't get on their nerve like amazon adds ...hell even apple has a similar money making strategy . DONT KNOW WHY YOU HATE XIAOMI SO MUCH.

[@bd8594]

I'm spiritual Mi fan from China though I haven't used any Xiaomi smartphone.(I have many Mi home devices like vacuum robot, automatic curtain and so on.) From my perspective, what touches me most is the goal of this company: " to make amazing products that touch your heart with honest pricing". And I think they did it.

[@Athrunwong]

Satinder Kaur Because they make sub par products. Their products are ok at best, but will not able to compete with  and Samsung. Go earn money and buy yourself a proper device. Using xiaomi is like using tech from 2 years back.

[@AchiragChiragg]

Satinder Kaur they aren't a charity everything has a caveat. They are probably selling your data to the Chinese government. And it is well know that there's a backdoor in some apps which they can exploit

[@DS-Pakaemon]

You are the product man. You are.

[@WTFIWFYDB]

Konata Izumi *flagship product 2 years back, and I'm not even talking about xiaomi's high end devices - mi mix 2, mi 6. They offer great devices for a great price. Not everybody has money or compelling usecase to spend 800-1000 usd on a phone. What do you mean by "make enough money"? For some people spending half of their monthly salary on a device is unreasonable ,when you have mortgage, wife and kids. Essentialy their budget devices would get the job done, without much of the sacrifices. It's stupid to treat luxury devices as a modern standart, as much as you would want to.

[@SoftBreadSoftware]

"That's not how capitalism works xD Now let me tell you about how Xiaomi uses a currently trending capitalist profit model."

[@vansh.vardhanjha]

very high quality and well researched video with great graphics... Thanks.

[@grahamb7947]

that segway to your sponsor though 👌👌👌👌 very well done lol

[@gurpinder7019]

Xiaomi's this business model isn't going to work for enthusiast users because in my opinion the first thing to do after buying a Xiaomi device is to root it and get rid of its obnoxious MIUI and put some good Custom ROM on it.

[@uwinvidanage2252]

Gurpinder Singh miui is better many custom ROMs Are unstable miui is pretty good and you'll get updates for like 5 years

[@DanBujo]

uwin Vidanage but will you trade that for ads, duplicate apps and privacy invasion?

[@vesnea]

Ethereal Di I use Redmi Note 3 pro with MIUI 9.5 china. I don't find any ads on settings, security apps, anything, including file manager.

[@Cat-ir8cy]

Ethereal Di I just bought a Xiaomi Redmi 5 plus and for the past month of usage I haven't seen any ads anywhere at all.

[@vivekbhagat5828]

uwin Vidanage lul because you're a shit ui does not mean that stock android shit and about 5 years update that only shit ui update not android

[@prsenterprises2254]

7.01 Bahubali ❤

[@vamsid.siddani6265]

Sayooj Radhakrishnan 😂

[@astragalizont]

Very interesting Video! Thanks!

[@fuzz33594]

Marton - impressively informative, as always.

[@cool_dude_lion1191]

Didn't he go bald?

[@mtksbctk]

@@Neiva71 fast but sparse

[@adityashukla7849]

That's why they never reveal their technical stuff used inside those mobile device 🤔 !!!! Because if that happened, people will be able to instantly install Stock Android with less ads! 😮

[@oreblagojevic1013]

INDroid What you mean "they never reveal thechnical stuff used in device", and actually you can install custom rom on xiaomi phones, i have one with installed stock oreo 8.1

[@stevenlk]

INDroid actually Xiaomi was famous for encouraging users (especially geeks) to install 3 party ROMs, now Xiaomi adds some restriction(like you need to verify that you are aware of the possible danger when unlocking the bootloader, and then Xiaomi offers an official toolbox to do that for you by one-click.)to enhance the stability of the phone since increasing user base. But Xiaomi's still one of the few companys that still keeps warranty after the customer flashed a 3 party ROM. So it's not actually a conspiracy stuff.

[@ragilmalik]

when you buy directly from china, it will just have miui bloatware and no playstore, which is equivalent to playstore + google's bloated apps. either way i am fine as long as it's cheap (well, don't ever complain to something cheap, right ?) since i don't use google stock apps either. they're not as bad as xiaomi but still bad. yeah, i don't even use chrome. i don't even use Google play service & playstore, the ultimate battery draining combo. CM browser old version (best adblock, not even captcha can enter, it will just automatically check the captcha box), nextcloud (google drive fork but unlimited), a+ calender, modified miui-based camera, keepvid (youtube replacement+downloader, better than installing youtube+ youtube downloader from xposed), and other awesome third party apps. people are always aiming at a phone with stock android, and then installing loads of apps themselves, then what the hell is the purpose of having clean stock android ?

[@AsifMahbubProtik]

Malik give me a link to download the cm browser you have, also the nextcloud app plz.

[@pinkipromise]

lineage exist for all xiaomi phonew

[@connormccloy9399]

Excellent job on the sponsor spot!

[@elliykollek]

They also have Android One smartphones (like the Mi a1 and A2/ A series), and for those, they rely more on hardware than on software.

[@kimsonpro]

since you've been attacking nonstop & very freely on Chinese brands and their strategies, but left out many western ones, all i've been seeing is Bias

[@mauroromero6264]

Sean Phạm he is not attacking the brand, he is just explaining its strategies to the public and explaining its good and bad points! Calm down!

[@KyleLi]

He works in china. Hes literally worked with many of these chinese mobile companies and is just sharing info about them, he knows more about chinese companies than western lol

[@vinsan98]

Yup so much negativity especially about Xiaomi... Anyways who gives a duck.. Xiaomi is killing every other brand in India.

[@oq8416]

ehh whats western phone brands? apple blueberry?

[@RidwanNurzeha]

It’s hardly to mention which the western brand is. Almost all of them based on China and Korea. Even Motorola owned by Lenovo, a Chinese company

[@ShreN_]

Loving the new intro!

[@GAStory]

What a great video, thank you!

[@MortyMortyMorty]

Reupload?

[@KaziMamun]

I really like your videos. So much informative and your analysis is great.

[@subhakantasahoo6638]

It used to work on that profit margin which put this company in fortune 500 in 5-6 years. But now they have became greedy and releasing overpriced phones.

[@Alessangria]

Great insights!

[@janpul1590]

Can you please do a video about the drama with zte and possibly Huawei?

[@munjalvishal1604]

You are so good that I can't put it in words.

[@vishaljoshi4002]

great video man!

[@uwereyinger8472]

Great Video and infprmation how modern day economics works. Thanks, great work.

[@ethanjohn7638]

Fantastic video as always, please consider doing more analysis on other Chinese companies as well.

[@ryuyaryuurabuwww1819]

hell yeah, great insights as always

[@hc3733]

Dude your stuff are amazing

[@delbroox]

Really interesting video, and great news that Skillshare thing

[@bdxoul]

You are the my Tech Hero. You deserves million subscriber. Love from Nepal

[@njohn8745]

One more thing, Mr. Lei is a big fan of Costco Wholesale, who explains some principles of Xiaomi and made similar announcements on net profit.

[@MrSeropamine]

You raise good points. I would also say that, yes, clearly they are playing the long game. Not only do they intend on selling users services, but I think that they also want to build loyalty( The fact that their phones are incredible value for money & the user forums support this). I heard somewhere that they intend on creating a captive market for their later generations of products [AC units, cleaning robots, things they haven't even invented yet etc] via this strategy. This is especially powerful given the rise of the middle class in China. I think it's excellent strategy- run at a loss now, yes, but hopefully you can ride the investment capital long enough to cash in on all the loyal customers.

[@timotiuspetrus5630]

i like your channel. it is more informative than a normal tech youtuber which is unique.

[@jordanlin4437]

Wait, so is it ep. 33 or 34?