{"id":6132,"date":"2014-11-08T01:07:40","date_gmt":"2014-11-07T17:07:40","guid":{"rendered":"http:\/\/onthe8spot.com\/?p=6132"},"modified":"2014-11-08T01:07:40","modified_gmt":"2014-11-07T17:07:40","slug":"xiaomi-not-apple-is-changing-the-smartphone-industry","status":"publish","type":"post","link":"http:\/\/onthe8spot.com\/index.php\/2014\/11\/08\/xiaomi-not-apple-is-changing-the-smartphone-industry\/","title":{"rendered":"Xiaomi, Not Apple, Is Changing the Smartphone Industry"},"content":{"rendered":"

However, looking at the full extent of Xiaomi\u2019s business model reveals just how different \u2013 and how disruptive \u2014 it is. For starters, unlike Apple, Xiaomi is not targeting premium customers; it\u2019s mostly teens buying those high-quality phones, and hardly at a premium, since Xiaomi\u2019s prices are at least 60% lower. A neat trick. How does Xiaomi pull that off?
\nTo sell high-quality cell phones at so low a price, Xiaomi keeps each model on the market far longer than Apple does. On average, a new version of a phone is launched every 265 days in the industry \u2013 down from 345 days in 2009. But Xiaomi doesn\u2019t renew its product for two years. Then, rather than charge high prices to cover the high cost of state-of-the-art components, Xiaomi prices the phone just a little higher than the total cost of all its components. As component costs drop over the two-year period by more than 90%, Xiaomi maintains its original price, and pockets the difference. Apple, on the other hand,\u00a0collects its highest profits with the introduction of each model and needs to come up with new model after new model to keep those margins up.
\nWhen you consider how much easier it might be to profit from plummeting component prices than from continual new feature development (which sooner or later will likely overshoot the needs of most cell phone customers in any event), the disruptive potential of the model becomes clear.
\nvia Xiaomi, Not Apple, Is Changing the Smartphone Industry<\/a>.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

However, looking at the full extent of Xiaomi\u2019s business model reveals just how different \u2013 and how disruptive \u2014 it is. For starters, unlike Apple, Xiaomi is not targeting premium customers; it\u2019s mostly teens buying those high-quality phones, and hardly at a premium, since Xiaomi\u2019s prices are at least 60% lower. A neat trick. How … <\/p>\n

Continue reading “Xiaomi, Not Apple, Is Changing the Smartphone Industry”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,79],"tags":[],"class_list":["post-6132","post","type-post","status-publish","format-standard","hentry","category-business","category-reposts"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts\/6132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/comments?post=6132"}],"version-history":[{"count":0,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts\/6132\/revisions"}],"wp:attachment":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/media?parent=6132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/categories?post=6132"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/tags?post=6132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}