[janekm]

Xiaomi want to become an ecosystem/lifestyle provider, kind of a blend of Apple and IKEA. The margin on each individual product aren’t high (especially the electronic ones), but it leads to selling higher margin products down the line. I’m living in China and I now find myself buying Xiaomi towels and USB cables and pens and AA batteries and beer... since I know they will have an acceptable quality at a non-excessive price. Margin on all those is likely to be much higher than on that $30 IP camera.