Many users have complained, this is the reason why on Xiaomi cellphones ads often appear. The advertisement is the core business of the China-based company.
Lately, there have been many complaints from Xiaomi HP users regarding the appearance of advertisements in core applications. Of course the appearance of advertisements is very annoying and Xiaomi knows that.
If you know it's annoying, why does Xiaomi let ads flood its smartphone products? While other smartphone vendors are not that bad?
Here is the full explanation.
Why on Xiaomi cellphones often appear ads?
As a public company, of course, Xiaomi wants to always have good company performance.
Company based in China it claims to have set a 5 percent profit margin limit on all hardware sales.
So, what does that have to do with ads on the device?
1. Hardware Manufacturing Cost Subsidy
Quoted from the page androidauthority.com, Xiaomi itself labels the company as an internet company not a company hardware.
This can be agreed upon when we look at the history of the company because Xiaomi's first product was MIUI, not a smartphone.
That doesn't make Xiaomi different or unique from other vendors. However, what makes it different are: Xiaomi includes ads and service integration, even in its main UI.
Well, it is this advertising business that allows Xiaomi to subsidize and offset hardware costs until the company dares to sell products at low prices.
That's what makes Xiaomi smartphones sell well in developing countries like Indonesia and India.
2. Profit-Increasing Strategy
In the third quarter of 2018, Xiaomi's revenue grew 49.1% from the same period reaching Rp106.7 trillion.
Revenue from advertising more than doubled or 109.8% percent to US$477 million or around Rp. 6 trillion.
Sales of themes, wallpapers, and ringtones, as well as Mi Pay contributed significantly to the revenue growth.
Although Xiaomi said it would never integrate ads/ads into its core application system, but proved to be incorrect.
Previously, Xiaomi was proven to deliberately bring up ads in the Settings menu, where this is the core application.
Reported from various sources, Xiaomi asserts, so far advertising has always been an integral part and as a core business or key to the company's business model.
Even so, Xiaomi also gives an option on how to get rid of ads on Xiaomi cellphones if you feel too bothered by the ads that Xiaomi appears.
Ads should be unobtrusive and users always have the option to receive fewer ad recommendations - Xiaomi
3. Recommendations to Users
From the start, Xiaomi did not take advantage of the sale of cellphones that they valued cheaply.
Instead of attracting high margins from hardware sales, HP is being used by the company as a showcase to showcase Xiaomi's online services, including advertisements.
On HP Redmi Note 7 Pro, users can be irritated by being inundated with advertisements in their applications. Ads are usually found in apps like Mi Browser, Mi File Manager, Mi Music, and other system apps.
You can-disable or disable these ads, but the method is hidden in the Settings menu.
This is actually legitimately done by Xiaomi, but this raises questions regarding privacy.
The reason is, every action we take on HP can change the ad recommendation algorithm. For privacy-conscious users, of course this is a big deal.
4. Company's Core Business
Xiaomi does rely on advertisements and services to generate revenue, so if Xiaomi removes these advertisements, the price of cellphones will certainly go up.
This could make Xiaomi lose users, considering that most of Xiaomi's users are in developing countries such as India, where the majority of the population is middle to lower class.
Losing automatic users will cost Xiaomi a significant amount of revenue.
Xiaomi Promises To Reduce Annoying Ads
Responding to user complaints, Xiaomi also plans to reduce the appearance of ads by modifying the appearance of the ad.
Quoted from GSM Arena, Xiaomi CEO Lei Jun asked the MIUI team to improve the user experience.
One of them is to reduce annoying ads. It will be realized at launch MIUI 11 future.
Although Xiaomi has not dared to delete advertisements on its cellphones, at least Xiaomi has started to answer user complaints.
That's the reason why on Xiaomi cellphones there are a lot of ads. Fortunately, these ads have not been seen on Xiaomi devices that are officially sold in Indonesia.
Also read articles about Xiaomi or other interesting articles from Andini Anissa.
