On August 28th, Xiaomi TV made headlines by being the first in the industry to announce a major price cut due to the recent decline in upstream raw material costs. In a Weibo post titled "Why Did Millions of TVs Take the Lead in Decreasing Prices?" co-founder Wang Chuan explained the reasons behind this unprecedented price reduction. Accompanying the article is an image showcasing the new pricing strategy.
The full text of Wang's post reads as follows:
Yesterday, we announced price adjustments, marking the first time any TV brand has reduced prices across the board. Many will recall that in the latter half of last year, TV panel and other raw material prices surged dramatically. Despite this, Xiaomi maintained its stance until early this year, stating that price hikes were unavoidable. However, this latest price decrease marks the smallest adjustment seen across the entire TV industry. Recently, we noticed a downturn in the prices of upstream raw materials. Our immediate response was to pass these savings onto our customers: the Xiaomi TV 4A saw price reductions ranging from 43 inches to 65 inches, with some models dropping by up to 1,000 yuan.
Adhering to the Principle of Contrarian Growth
Some might say Xiaomi TV is taking a bold move, but it aligns with our philosophy. Sticking to high prices while cutting costs for users reflects the core values of Xiaomi. Earlier this year in May, we unveiled the world's thinnest LCD TV, the Xiaomi TV 4, measuring just 4.9mm thick—a thickness 30% slimmer than the iPhone. This premium 55-inch model retails for only 3,999 yuan, nearly identical to the price of an ordinary 55-inch TV. In March, when other TV companies were launching new spring products priced at sky-high levels, we introduced the high-performance Xiaomi TV 4A series, starting at 2,099 yuan. Industry insiders dubbed it the 'fighter' in the TV market.
Why set such a price?
Lei Jun often emphasizes that Xiaomi is a kind company, committed to cost pricing and maintaining low profit margins. While we have the capability to sell products at 9,999 yuan, we prefer to keep prices at 3,999 yuan. Setting this price ensures we don't lose money. Given the current drop in raw material costs, we are reinforcing our commitment to cost efficiency and promptly reducing TV prices.
Xiaomi was founded by a team of engineers. Unlike other companies that view technology as a tool for generating high gross profits, our mindset is straightforward: our hard work in technology should benefit millions of users, not serve as a means for manufacturers to profit. This vision guides us toward achieving our mission of "bringing technology to everyone."
We aim to be friends with every user. Lei Jun often says that if you're focused on earning more than 100 yuan per day, how can you truly connect with others? Instead, think about how to save people 100 yuan daily.
In the past five years, there have been no KPIs related to sales or profits. Our focus has been on creating excellent products, and success has naturally followed.
In the first half of this year, the overall TV market experienced a decline. Even established players faced challenges, yet Xiaomi TV reported impressive growth. According to Zhong Yikang's data, Xiaomi TV sales volume increased by 91.2% year-over-year in H1 2017. A joint report by the CCID Research Institute and China Electronics News noted that Xiaomi TV was the brand with the highest sales growth on the internet in the first half of 2017. Ovum Cloud data for Q2 showed Xiaomi TV leading in 49-inch and 55-inch online sales. During this year's 618 shopping festival, we topped sales charts on JD.com and Tmall for various screen sizes. While these rankings are encouraging, I am particularly proud of the fact that Xiaomi TV boasts the highest repeat purchase rate in the entire TV industry, including foreign brands. This demonstrates that once users experience Xiaomi TV, they recognize its value.
How do we make a profit at low prices?
So why is 2017 a winter for the TV industry and a spring for us? Many assume Xiaomi TV operates at a loss due to its low prices, but let me assure you, we are profitable. Here's why:
As an internet company, we leverage several core advantages in the TV sector.
First, we excel in the upstream supply chain compared to traditional manufacturers. With overcapacity in manufacturing today, we don’t own factories. Instead, we partner with the world’s best and most efficient foundries—Sony, Samsung, and Sharp—to produce high-quality TVs.
Second, our sales channels are increasingly advantageous. Xiaomi’s self-built online platforms and stores are highly efficient. We’re the first TV brand to offer consistent online and offline pricing. Traditional manufacturers allocate 40% of their revenue to various offline channels, effectively creating dual pricing models that confuse consumers. They justify this by saying, "Don’t undercut, or don’t sell TVs."
Third, our business model is based on tipping—Internet services. If users appreciate our products, we believe they'll tip us if the experience is good enough. Xiaomi TV has an impressive daily operational rate of 68%, significantly higher than the industry average of 56%. This indicates strong user engagement, with over 20 million users on TV platforms and more than 10 million monthly active users, making it China’s largest Internet TV platform. With such a large, active user base, our e-commerce and membership revenues have surged, ensuring profitability even without hardware profits—a sustainable business model.
A Company from the Future
Our dream at Xiaomi TV is to create the best TV that everyone can afford. The combination of supply chain efficiency, sales channel innovation, and our unique business model unifies the seemingly contradictory goals of "the best TV" and "everyone can afford it," enabling us to invest heavily in product development while maintaining high cost performance. Over the past few years, while many companies rushed to capture the market, we focused on improving quality, sound, craftsmanship, content, and intelligence, excelling in each area. For instance, Chinese TV manufacturers typically neglect sound quality, but we invested heavily, collaborating with world-class acoustics experts to establish a top-tier lab. We've introduced innovations like Soundbar speakers, independent subwoofers, and panoramic sound theaters, offering users cinema-like audio experiences.
From the first to the fourth generation, each iteration of Xiaomi TV has advanced significantly, placing us at the forefront of the industry. We pioneered an AI system that "understands both content and users." Users no longer need to struggle through vast amounts of content. We were the first to launch AI voice TVs, making smart TVs accessible to illiterate children and tech-averse seniors. This year’s flagship product, the Xiaomi TV4, features a frameless glass design, a 4.9mm body 30% thinner than the iPhone, and starts at 3,499 yuan. It’s remarkable.
With the rise of the internet, users are becoming more informed and savvy. The era of high-margin pricing is fading, and the future belongs to companies like Xiaomi, which prioritize affordable, high-quality products. Xiaomi is a company from the future.
For updates on smart TVs and boxes, follow the Smart TV Information Network Sofa Butler (http://), China’s leading website for TV boxes and smart TVs, offering resources, communication, and expert advice.
In regions where electricity is generated using fossil fuels, bitcoin mining is considered detrimental to the environment. As a result, many bitcoin miners have moved operations to places with renewable sources of energy to reduce Bitcoin's impact on climate change.
Bitcoin mining is the process of creating new bitcoin by solving puzzles. It consists of computing systems equipped with specialized chips competing to solve mathematical puzzles. The first bitcoin miner (as these systems are called) to solve the puzzle is rewarded with bitcoin. The mining process also confirms transactions on the cryptocurrency's network and makes them trustworthy.
For a short time after Bitcoin was launched, it was mined on desktop computers with regular central processing units (CPUs). But the process was extremely slow. Now the cryptocurrency is generated using large mining pools spread across many geographies. Bitcoin miners aggregate mining systems that consume massive amounts of electricity to mine the cryptocurrency.In regions where electricity is generated using fossil fuels, bitcoin mining is considered detrimental to the environment. As a result, many bitcoin miners have moved operations to places with renewable sources of energy to reduce Bitcoin's impact on climate change.
Btc Miner,Bitmain S19 Xp,Bitmain Antminer S19 Xp,Antminer Bitmain S19 Xp 140Th
Shenzhen YLHM Technology Co., Ltd. , https://www.apgelectrical.com