Xiomi has increased enourmously year after year and it is of no doubt that the phone manucfacture has climbed to top manufacturer. But however there was this issue about their latest phone which is the Redmi Note 5 pro about them having limited stock supply.
Now the CEO of firm explained why it was to hard to get Redmi Note 5 Pro.
XIAOMI EXPLAINED WHY IT WAS SO HARD TO GET THE XIAOMI REDMI NOTE 5 PRO
Year after year, it is of no doubt that they increasinly climbed to be one of the best phone manufacturer alongside other giant band which inlude but not limited to the like of Samsung, Huawei, Google Pixel etc.
But the truth is that they didn’t just climbed to be one of the best but also had some disadvantage that came alongside which has led to growth espcially in the stock of its smartphones.
Some global countries where the Chinese brand has official presence have seen some models run out, with Xiaomi taking some time to replenish the stock.
Faced with this issue in an interview with India Today, the well-known Chinese smartphone manufacturer, of course, Xiaomi’s CEO, Lei Jun explained why this happened.
According to this, this is a consequence of the business model adopted by the brand whose profit margin is greatly reduced. Thus, the Chinese brand produces a limited amount of smartphones in order to avoid large stocks and to be less influenced by the sales breaks.
With profit margins between 1% and 2%, Lei Jun admits that, at most, Xiaomi can only withstand 10% to 12% of the stock, thus avoiding financial difficulties.
This issue arose after Redmi Note 5 Pro was facing some stock problems in India, leading to many users not being able to purchase this model. For this particular case, the CEO of the Chinese brand says that the manufacture of this model is conditioned by the availability of the camera module, which has delayed production.