Re:Xiaomi raises $1.1B on a $45B valuation
by steveax on Monday December 29, 2014 @01:35PM
(#8811071)
Very easy to increase margins? Historically, this is very difficult for companies to do. What makes Xiaomi special in this aspect?
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Re:Xiaomi raises $1.1B on a $45B valuation
by akhatri_aus on Tuesday December 30, 2014 @09:31AM
(#8814683)
It's building recognisable brand, and that too a fairly good one. Historically it's been quite easy for companies that do this to raise margins. This is a company barely 4 years old and quite nearly a household name in asian countries.
Additionally when manufacturing electronics, input components decrease in price so there is a natural tendency for their margins to increase even if they keep their pricing consistent.