Why is Xiaomi mobile phone cheap and Huawei mobile phone expensive?

Since entering the era of smart phones, domestic mobile phone brands have ushered in a rapid and large-scale outbreak and rise, and many domestic manufacturers such as Xiaomi, Huawei, OPPO and vivo have emerged. They not only snatched the market share of Chinese mainland's mobile phones from Samsung, Apple and LG, but also gradually surpassed them in overseas markets such as Europe and India.

The most typical ones are Xiaomi and Huawei. Xiaomi can be regarded as the originator of Internet mobile phone manufacturers, which pioneered the listing of new mobile phone products. So far, everyone is very excited to see Lei Jun appear at the Xiaomi conference. Huawei, on the other hand, symbolizes the high-end field of domestic mobile phones, and is the only domestic manufacturer that dares to price its products above 5,000 yuan.

Then, why is the same positioning, Xiaomi mobile phone cheap and Huawei expensive?

Historical factors: Xiaomi-Internet mobile phone manufacturer, Huawei-traditional mobile phone manufacturer.

As we all know, in the earliest era of functional machines and smart phones, no mobile phone brand has a very grounded name like Xiaomi. At that time, Lei Jun was mainly busy as the manager of Jinshan Software, but Huawei, as a traditional and established communication technology enterprise, has been in the field of mobile phones. At that time, it was listed as one of the four giants of "China Cool Alliance", and the other three were ZTE, Coolpad and Lenovo.

So, how did Xiaomi rise? Lei Jun first saw that smart phones are expected to flourish, but also saw the current situation of low product configuration and high price in the market, so he founded Xiaomi in one breath. From the beginning, the slogan of "cost performance" was played, and it was advocated to be born for young enthusiasts. As the name implies, the performance configuration is excellent, but the price is very low, so it is branded with the image that Xiaomi is now super cost-effective.

Different product positioning: Xiaomi positioning national mobile phone, Huawei positioning high-end business flagship.

This may be the most important reason for the huge price gap between the two. Since Lei Jun was founded, Xiaomi has claimed to break the current situation of expensive smart phones, so that everyone can use smart phones and afford high-performance mobile phones. Therefore, Xiaomi mobile phone is also called national mobile phone. The price of its products equipped with Qualcomm Snapdragon flagship processor is still less than 3,000 yuan, which truly fulfills their promise, with top performance and affordable for everyone.

Huawei is different. At the beginning, Huawei also focused on the low-end smartphone market, but it could not compete with Xiaomi. So after Yu Chengdong took the lead, he directly changed his strategy and only aimed at high-end business people to build high-end flagship products. Since then, Huawei has developed the practice of holding a press conference in Europe, and constantly added high-end luxury brand values such as Leica certification and Porsche design to its products, resulting in product prices approaching Apple Samsung. However, the sales volume is still satisfactory, which proves that this strategy has been well implemented in Huawei.

Product cost and profit are different: Xiaomi's cost is lower than Huawei's, and the profit earned by each mobile phone is lower than Huawei's.

I remember that at the beginning of 20 18, the analysis data of some well-known market statistics institutions showed that the profit earned by Xiaomi's mobile phone was only 68 yuan, while the profit earned by Huawei reached several hundred yuan. Although it was not only Samsung Apple, it was much higher than Xiaomi's. Xiaomi's consistent cost-effective strategy is also doomed to have little profit margin, while Huawei's high-end selling price profit is of course high.

In addition, the cost of Xiaomi mobile phone is quite different from that of Huawei's high-end flagship machine. The cost of mobile phone depends not only on hardware, but also on R&D and industrial design. First of all, in the past, Xiaomi's mobile phone used top hardware, but R&D and industrial design were definitely not as good as Huawei's flagship series, so the price could not be too high. However, in recent years, from the perspective of Xiaomi 6 and Xiaomi MIX series, the design cost and industrial design are increasing, so the corresponding price of Xiaomi has also risen from 1999 yuan to more than 3,000 yuan.

Huawei's mobile phone has always used its own HiSilicon Kirin processor, including camera authentication authorized by Leica and design given by Porsche, which will cost a lot of money. Therefore, Huawei's high-end business flagship is not just lip service, but a combination of "face" and "strength", which naturally leads to high cost and high price.

So in the final analysis, this is also the reason why Huawei's mobile phone price is more expensive than Xiaomi. If Huawei only talks about "configuration" and doesn't care about the "face" of business people such as Leica and Porsche, then it is its glory brand, which is why the glory series is the same as Huawei's flagship configuration, but the price is one or two thousand cheaper.