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Comment by ztratar | Hacker News Reader

No way the price can be that affordable for those specifications; the OEMs would either be getting screwed or Xiaomi is making close to nothing on each machine.

I would find the latter plausible if they weren't already set to dominate the market upon release. This would simply be a move to assert brand dominance and squeeze everyone else out of the market.

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Xiaomi doesn't have to factor in IP rights and R&D, that keeps costs down. I doubt, however, that "stealing" from Apple is a viable business model in the long term.

> doubt, however, that "stealing" from Apple is a viable business model in the long term.

It's a fantastic way to "bootstrap" a business though.

Xiaomi is just learning from Samsung's page.

You seem to have been downvoted because people forgot how every Samsung phone was an iPhone rip-off on one way or another. Also their first tablets and even the use of Apple icons at their shops decorations.

It may not be anymore and that's the point of the comments thread: Great way to bootstrap your business. Once up and running with profits you can go your own way.

Samsung made enough cash to settle eventually.

Xiaomi? Won't survive the US market attacks from the incumbents.

But Intel does. In fact, I guess Intel takes costs from R&D, manufacturing, IP etc. and then just multiplies that by 10 to get the price.

With their market dominance right now, the processor alone will be >200 dollars.

works for Samsung at first.

Xiaomi produces their devices and sells them for almost no profit: they only made $56 million in 2013.

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