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Xiaomi wants to affirm itself as an alternative to Spotify, Amazon and Netflix


Xiaomi wants to affirm itself as an alternative to Spotify, Amazon and Netflix

The Chinese technology is looking for new sources of revenue and, according to one of its executives, prepares to bet on online services. In this way, Xiaomi aims to assert itself as an alternative to Spotify, Amazon and Netflix, while the new offer that transcends its smartphones will begin in India.

In addition to their mobile devices, which will continue to be extremely competitive, the brand will bet on services. It will not be an easy task, but part of your appeal goes exactly the way, the implicit challenge.

Who says so Manu Kumar Jain, one of the most cherished executives in Xiaomi. Jain is currently the company's chief executive in India, the world's 2nd largest smartphone market, and the big technological bastion outside his home market, China. By his wrist, the Chinese manufacturer has already surpassed even Samsung.

Services, Xiaomi's next big bet

Jain's statements indicate India's choice as the first market to receive the new services. In effect, we will have digital payments, streaming music and movies. A bold goal that has already become the priority for the director of the brand in that country. Manu Kumar is eager to face such giants as Google Pay, Spotify, Amazon Prime. Incidentally, even Netflix, the global leader in video streaming.

Although it may seem inappropriate, this goal is in line with Xiaomi's business model, which is in full expansion. Next we have its justification:

Xiaomi achieved a profit margin of less than 1% as a direct result of the sale of hardware and mobile devices (smartphones, tablets and wearables) in 2019. We remain firm in our position never to exceed a profit margin of 5% in mobile devices sold. It will be the internet services that will generate more recent for us (Xiaomi) – points the executive.

Xiaomi smartphones Amazon Spotify Netflix

Designing new smartphones and mobile devices is just part of our job. The other parties relate to our relationship with customers as well as the sale of services. They are three vectors for the generation of revenues and with the intention of continuing to grow. – adds Jain.

The three financial pillars of Xiaomi

In statements Economic Times, Xiaomi's top manager in that country revealed a lot about the current state of the company. He was aware of the limitations imposed by his boss in order to keep the price down on his Android smartphones. It is one of the pillars, with services and retailing being the others.

Still by the way, remember the statements of Lei Jun, CEO who only exempted a category of smartphones as likely to suffer a price increase.

Given this scenario, it is unlikely that smartphones will be a primary source of revenue. Still, due to the increase in sales volume, these are increasingly important to the company for a variety of reasons. Above all, they are a great vehicle for promoting the Xiaomi brand name.

From here, Xiaomi wants to invest in content subscription services and will start by investing in the Indian market. To this end, the company already has the Mi Music platform, as well as Mi Video, for streaming music and video, respectively. However, at this time both platforms are free.

Competition to Amazon Prime, Netflix and Spotify

The Chinese technology wants to generate profits from applications, digital payments, streaming movies, or music. To this end, the company has already channeled a large investment to develop large-scale solutions from the present infrastructure.

As such, its alternatives to Spotify, Netflix and Amazon Prime will no longer be free, and will also receive new content to justify this decision. At the same time, your application for data transfer, Mi Drop, already has more than 100 million installations from the Google Play Store.

The Chinese technology has realized the huge potential for profit that is present in the provision of services, especially when consumers are becoming more accustomed to it. A service for every need, from music, movies, among others.

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