Lei Jun: Xiaomi's board of directors decided that the hardware profit rate should not exceed 5%

Sina Technology News April 25 afternoon news, at the millet 6X conference, Xiaomi founder, chairman and CEO Lei Jun revealed that Xiaomi board of directors passed the resolution on April 23: Xiaomi hardware comprehensive net profit rate never exceeds 5%. If there is more than one part, all of the excess will be returned to the user.

The launch of the Xiaomi 6X is priced at RMB 1,599. Lei Jun said that the cost of 6X is already a lot higher than that of 5X. However, this price is still achieved. 'Compared with other vendors, almost the same configuration, almost half the price.'

Lei Jun was still playing the first annual meeting of Xiaomi. The staff used a mobile phone to shoot a live video. Lei Jun in the video said at the then annual meeting that 'the Chinese market gave everyone a good opportunity. The mobile phone is the closest to everyone. The partners, in the past only had communication functions, Apple brought touch screens to change the mobile phone industry. We need to make Apple-like quality products, sell them out on the Internet, and do $ 1,800 or even $ 800 for 5,800 yuan mobile phones.' Lei Jun Now that this dream has been achieved.

However, he said that Xiaomi had done it in the past eight years and it would be a problem to be able to adhere to this road in the next eight or even eighty years.

He disclosed that on April 23, Xiaomi had just passed a board resolution: Xiaomi hardware's comprehensive net profit rate will never exceed 5%. If there is more than that, more than half will be returned to the user.

Lei Jun explained that this resolution is to put technological innovation and efficiency in the same important position. 'Shareholders also hope that millet has 20% -30% of profits, I said that you have broken this idea, will never exceed 5%. Xiaomi is not only a hardware profit, but also other income. With this restriction, Xiaomi can become a great company in the future.

He believes that, under the premise of legality, benign competition will help the rapid development of the industry. Eight years ago, their mobile phones were also foreign brands. Now that China's mobile phone manufacturers have risen globally, they have basically defeated cottage mobile phones.

In addition, he said that low profit margins did not affect Xiaomi’s innovation capability. Innovation requires financial support, but it does not mean that there is a need for huge profits. Innovation is not all about money. It depends on ingenuity, and reasonable profits can also ensure innovation. .

"If Xiaomi wants to make a great company, he needs to remember the mission first. Maybe I will not be the CEO in a few years, and Xiaomi will be number one in the world, but we will still stick to this path." Lei Jun said a bit chokingly.

2016 GoodChinaBrand | ICP: 12011751 | China Exports