The average price of Xiaomi smartphones increased by 11,8 %. The reason is higher costs and a market trend

The company Xiaomi showed us its latest financial results yesterday along with an increase in its revenues. A new study today points to data we’ve been seeing for some time now, and which is nothing other than price increases.

However, it was mainly the company’s own smartphones that suffered the most. They became more expensive by an average of 11.8 %.

Higher costs and a market trend

After the increase in costs for the flagship series and partly also the price of the latest series Redmi Note 9, last year the average price of Xiaomi mobile devices increased by at least 11.8%.

In connection with the second quarter, the company’s total revenue reached roughly 54 billion Chinese yuan, which is about 6.6 billion euros after conversion. This means year-on-year growth of 3.1% and 7.7% compared to the previous quarter of this year!

Thanks to this, the company achieved a gross profit of roughly 7.7 billion Chinese yuan, which is about 0.95 billion euros after conversion. This means year-on-year growth of 6.1% and 1.9% compared to the previous quarter of this year!

As detailed in this study, the company increased the final price of every new smartphone each month, which led in some months to a month-on-month increase of up to 7.5%.

Xiaomi Mi 9 vs Xiaomi Mi 10

We see this rise in price differences mainly between last year’s Mi 9 lineup and this year’s Mi 10 lineup. About a year ago, Mi 9 debuted on the global market with an official price of 449 €. On the other hand, Mi 10 started at a price from 799 EUR, depending on the configuration.

It’s clear that the company’s prices have gone up. We have to take into account that the actual costs of current tech hardware have also increased, so this price increase isn’t caused only by Xiaomi, but also by the market trend itself, which is growing exponentially.

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