1999 yuan, what is the concept? Now on the market, there is no smartphone with less than 3000 yuan that can compete with MI1 configuration.

Even for mobile phones up to 3000 yuan, many mobile phones are not as configured as MI1 in all aspects. However, the price of such a mobile phone configured to hang all mainstream mobile phones on the market is only 1999 yuan!

"Did I hear you right, 1999? Did I hear you wrong or did Mr. Lei say it wrong?"

"Wrong fart, didn't you see that the figure of 1999 yuan has appeared on the big screen!"

At this time, on the big screen in front of the stage, a huge "1999 yuan" filled the whole screen. The Xiaomi fans and audience couldn't stop talking when they looked at this number, especially some specially invited media and journalists and evaluation experts in the mobile phone industry.

"Lao Yao, didn't you say that the price of MI1 would not be lower than 3000? Why is it 1999 now?"

"I don't know. I heard from a supplier friend of Xiaomi last time. He said that according to the configuration of Xiaomi's goods, the cost would be at least 1780. If you add the distribution costs such as R & D logistics and channel stores, the starting price would be at least 2783000!"

"Then how can they sell so cheaply? Isn't it a loss?"

"Who knows, maybe they have other ways to make profits!"

......

The audience's discussion lasted for dozens of seconds. President Lei on the stage raised his palm, suppressed the sound of discussion on the stage and said:

"I know you must be curious. How can we achieve such a good configuration but only such a low price for our Xiaomi MI1 mobile phone?

Today, I won't sell off. Please look at the big screen. First of all, let me briefly talk about the main cost of mobile phones... "

Mr. Lei briefly introduced the various costs of mobile phones, including the material cost of internal components of mobile phones, R & D cost, patent fee, and the cost of mobile phones from delivery to transportation to agents and channels.

After the introduction, the PPT will switch to the next one. The costs of transportation, agents, distributors and so on have all been worn out. Instead, it is almost zero. Online sales!

"Our Xiaomi mobile phones will be sold online through the official website and Jingdong Direct stores!"

After President Lei said this, the audience also understood that after a long time of emotional trouble, the configuration of Xiaomi was saved. During the period from the delivery of mobile phones to consumers, the costs of transportation, agents and channels were cut off, which means that consumers directly get the ex factory price!

Moreover, it's more than the ex factory price. Looking at the above, President Lei talked endlessly about how Xiaomi talked to suppliers about leather upgrading and price reduction. Xiaomi fans and audiences under the stage sincerely feel that Lei and Xiaomi have a great conscience!

The cost performance of MI1 is really too high. I'm afraid it's difficult to find competitors in the domestic smartphone market, even in the global mobile phone market!

"No, they can't make money by doing so!"

Sitting in the second row, the mobile phone evaluation expert of Zhongguancun Online sighed with some wonder. He doesn't know how many mobile phone press conferences he will attend and how many mobile phone evaluation reports he will write every year. Therefore, his understanding of all aspects of mobile phones is absolutely professional.

With the market price of these configurations on Xiaomi, the final cost will not be less than 1700. If you add the cost of Xiaomi's operation and R & D, he feels that MI1 mobile phone doesn't earn a dime at all!

It happened that Fang Zhe, the big boss sitting in front of him, heard the evaluation, and Fang zhe didn't look back. This is what he heard. I don't know how many similar exclamations. Hearing what the "knowledgeable" expert said, Fang zhe thought: "it's more than not making money. In fact, if MI1 is sold at the bare metal price of 1999 yuan, it will definitely lose money!"

Yes, now the final cost of each mobile phone of MI1 is nearly 2050 yuan, which means that Xiaomi has to pay nearly 50 yuan for each sold MI1 bare metal!

Therefore, when Fang zhe proposed to set the mobile phone price at 1999 yuan at the Xiaomi high-level meeting, all senior executives and Xiaomi entrepreneurs, including President Lei, grew up and looked at him in surprise.

Who is Fang zhe? The founder of Huizhong, the four major Internet companies in China, and the chief consultant of Xiaomi, now almost no one dares to question his authority. Even so, when Fang zhe said the price of 1999 yuan, which is lower than the cost price, he was questioned by Xiaomi executives.

And Fang Zhe, also had to spend more than two hours, good or bad, finally let them understand their determination to set this price!

First of all, Xiaomi is a start-up mobile phone company. If it wants to quickly stand out in the mobile phone industry with large factories all over the country and even the world, it must have its own strong core competitiveness.

In the early stage, the key point of this competitiveness is cost performance. No matter how well the MIUI operating system is done, Xiaomi mobile phones are not used by many people when they are expensive, but the reverse is different. If Xiaomi mobile phones can capture people's hearts at an easily moving price, they can quickly open their reputation and occupy the market.

In the previous life, Xiaomi achieved a shipment of 70 million mobile phones a year in three years, which is the best proof of the success of this strategy!

Obviously, the price of 1999 yuan, more than 2000 or even 2000 yuan, has unparalleled attraction!

When selling things, merchants always like to price * 99, which is to understand the price psychology of users when choosing goods. Although 1999 is only one yuan cheaper than 2000, it is also more than 1000 mobile phones, not more than 2000 or 2000 mobile phones.

Only one dollar is needed to capture most of the current users with mobile phone budget prices between 1000-2000. This money is definitely worth the compensation!

Of course, in MI1, the difference is not only 1 yuan, but nearly 50 yuan. One mobile phone is 50 yuan, and one million mobile phones are 50 million yuan. For the high-quality and low-cost mobile phones like Xiaomi, the sales volume of 1 million is just a threshold! Therefore, MI1 set this price in order to make a loss!

However, if you count the difference between the release time and the official launch time of the mobile phone, the price profits of several different flash memories of MI1, 8g, 16g and 32g, as well as the mobile phone shell, mobile phone film, headset and other mobile phone supporting parts around Xiaomi, you can basically make up for the loss of bare metal price, and even have a net profit of less than 10 yuan! Of course, if users don't buy these peripherals and only buy bare metal, they won't lose money!

However, Fang zhe believes that not many users who buy Xiaomi's mobile phones will not buy Xiaomi's earphones, mobile phone cases and other supporting products, which are also famous for their cost performance!