How is Xiaomi able to sell such cheap phones with moderate specs and still be in business?
In: 4
Easy: government cheese and subsidies, 100% tax rebates for factories located in special economic tax free zones, integrated 100% local supply chain, and know-how from skimming talent and IP/technology learned from decades of manufacturing. They make toothbrushes to electric cars and can’t fail because it is a state enterprise masquerading as a stock listed company.
The cheap phones could possibly be a loss leader for them, and really are dirt cheap for the performance given.
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