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Xiaomi vows to keep its profits low for its customers

Low profits = lower costs = happier customers

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Why are Chinese phones so cheap? While other brands share truistic corporate lingo, Xiaomi remains crystal clear as to why their phones are so affordable — they don’t want your money.

Rather, they don’t want all of it.

Just a few days ago, Xiaomi introduced the new Xiaomi Mi 6X during an exclusive event at Wuhan University. Besides the new phone, the company also revealed its promise to keep its overall net profit margin at just five percent.

Following the event, Xiaomi founder Lei Jun released a company-wide memo to all the company’s employees. The memo uncovers deeper details into Xiaomi’s five percent promise.

In the memo, Jun argues that most of consumer culture today focuses on maximizing profits. Often, brands would price their products with a huge markup. The conventional pricing strategy takes away the value from the consumer and puts it in the pockets of companies.

Instead, Xiaomi marks their phones near cost. Since their debut in the smartphone biz, Xiaomi’s phones have earned the reputation as a truly affordable phone. According to the company, this strategy brings the value back to where it belongs — the consumers.

Further, if the company’s profit exceeds their five percent promise, they will find a way to return the surplus back to the consumers.

Across the boards, Xiaomi has always fulfilled this promise. Their continued reputation as the most bang-for-buck Chinese smartphone tells the tale for them.

As you might assume, the Chinese company does this through massive cost-cutting. However, it’s not as you might think.

Instead of short-changing their consumers with inferior products, Xiaomi reduces its costs on marketing, advertising, and distribution.

You’ve probably noticed that the company is not as aggressive as other brands. Xiaomi doesn’t dress its branding with NBA athletes, local superstars, or pestering salespeople. Instead, they rely heavily on word of mouth to get their phones across.

Additionally, Xiaomi rarely opens their own brick-and-mortar stores. In fact, their rare store expansion efforts began only recently.

Using their cost-cutting methods, Xiaomi manages to keep their products and pricing in tip-top shape. The company realizes that better products equal happier customers and more sales. Even until now, consumers are still voting yes with their wallets.

Whether you believe in Xiaomi’s corporate promises is irrelevant. Xiaomi remains one of the top dogs in the value for money department.

SEE ALSO: Xiaomi Redmi 5 Plus (Redmi Note 5) Review

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HONOR Magic8 Pro gets Android 17 Beta 3 support early

Android 17 arrives early

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The HONOR Magic8 Pro is among the first smartphones to support Android 17 Beta 3, giving developers early access to Google’s upcoming mobile platform ahead of its wider release.

According to HONOR, the early beta access allows developers to test app compatibility, optimize performance, and integrate new Android 17 features using the company’s flagship smartphone.

Android 17 Beta 3

Android 17 Beta 3 introduces several new multitasking, customization, camera, and privacy tools. One of its biggest additions is the expansion of Bubbles into a system-wide feature. Apps can now run in floating windows that users can minimize and reopen from anywhere on-screen.

The update also adds support for the RAW14 image format. HONOR says this allows developers to better take advantage of the Magic8 Pro’s AiMAGE camera system for improved image processing, dynamic range, and color accuracy in third-party camera and editing apps.

Android 17 Beta 3 also expands UI customization. Users can now hide app labels for a cleaner home screen layout, while developers can adjust Photo Picker layouts with different aspect ratios including portrait-style 9:16 views.

Other updates include separate Quick Settings toggles for Wi-Fi and mobile data, alongside a redesigned screen recording interface that lets users choose between recording the full display or a specific app.

Privacy and security improvements are also part of the update. Android 17 Beta 3 adds session-only precise location access, blocks local network access by default, and introduces protections against code injection attacks. Google is also preparing Android for future cybersecurity threats through support for Post-Quantum Cryptography (PQC).

The HONOR Magic8 Pro features the Snapdragon 8 Elite Gen 5 Mobile Platform, HONOR’s AiMAGE imaging system, and a 6,270mAh Silicon-carbon Battery. HONOR says its participation in the Android 17 Beta program highlights its continued collaboration with Google ahead of Android 17’s official release.

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Dua Lipa is suing Samsung for $15 million

Samsung allegedly used her image without her consent.

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Samsung has an unlikely rival. Dua Lipa is suing the South Korean company for using her image without her permission.

In the marketing world, brand endorsers are part and parcel of how products are pushed to the market. Famous celebrities are often asked to advertise a product for their potential star power. That said, a company needs the endorser’s consent first.

According to a new suit (via Variety), pop star Dua Lipa is suing Samsung for using her image to endorse TVs without her consent. The South Korean brand is reportedly using Lipa’s photo on the packaging of its TVs. Lipa alleges that the photo’s usage implies that she endorses the TV, which she does not.

The complaint also alleges that Lipa asked Samsung to take down the image last year. However, Samsung’s reply was, to her, “dismissive and callous.” The brand has then continued to use the image in its packaging.

To prove her point, the suit includes anecdotes of Samsung customers who bought the TV specifically because the packaging has Lipa’s image on it. To pay for damages, Lipa is asking for US$ 15 million from the global brand for copyright infringement.

SEE ALSO: These Samsung TVs and sound devices are perfect for summer

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The Switch 2 is getting more expensive this year

The price increases will start this month.

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Gone are the days when consoles get cheaper as time goes by. These days, especially because of the RAM crisis, gaming consoles are getting more expensive. Joining this worrying trend, the Nintendo Switch 2 is getting a price hike.

Even upon launch, the Switch 2 was already pricier than its original counterpart. Currently, without the incoming price hikes, the console retails for US$ 449.99. It’s a lot but not completely out of reach.

Last week, Nintendo announced a price hike that might push the console to less than attainable levels. Starting May 25, the Switch 2 will cost JPY 59,980 (up from JPY 49,980) in Japan. The original generation is also getting a hike: JPY 47,980 for the Switch OLED, JPY 43,980 for the base Switch, and JPY 29,980 for the Switch Lite.

Abroad, you can expect price hikes on September 1. The Switch 2 will jump to US$ 499.99, CAN 679.99, or EUR 499.99, depending on where you live. These are the only official hikes announced right now, but Nintendo has confirmed that price revisions will be implemented in other regions, too.

As you might expect, the price increases are due to the ongoing RAM crisis. Though the console is an undeniable hit, the Switch 2 can’t hide behind its popularity against the price shortage dealt by unnecessary data centers. At the very least, users worldwide have time to grab the console in its original pricing before the hikes.

SEE ALSO: Switch 2 now lets you play old games in 1080p

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