Generally, the price of mobile phones is high, and with the increase of spare parts production capacity, the price gradually drops. Therefore, Xiaomi extended the time by making an appointment to buy, so as to reduce the production cost.

Xiaomi uses hardware futures to reduce production costs. Xiaomi pushed down the price at once, did not ship in the early stage, and then produced in large quantities after the price of parts was reduced in the later stage.

Compared with the traditional mobile phone sales model, it uses online mall direct sales to save intermediate costs.

Online direct selling saves intermediate links. Compared with other mobile phones, there are agents at all levels in provinces, cities and counties, and finally go to the mall to make profits at all levels. Of course, mobile phones are expensive.