How is Xiaomi able to sell such cheap phones with moderate specs and still be in business?

Question

How is Xiaomi able to sell such cheap phones with moderate specs and still be in business?

In: 4

Answer 1

Now there are two different business models you need to understand. Xiaomi believes that you shouldn’t make 100% or more on your device on top of what the device actually costs, and you should make some money but not have to pay for the name. They make money by selling more devices overall.
Companies like Apple work a different way, an iPhone 14 costs about $500 or less to make but you pay $999 to buy it. So you pay a lot for the name on the device and not for the device itself.

So they stay in business by charging you the real price of the device without charging for the name.