However, the Chinese company still does not have large stocks, and its CEO explained why. Although the well-known Chinese smartphone manufacturer, of course, Xiaomi has gained more weight in the market, but, the truth is that this has led to sustained growth, especially in the stocks 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. So, what do you think about this? Simply share all your views and thoughts in the comment section below.
Δ
