Xiaomi admits that it puts ads in smartphone setup menus

Sep

19

2018

Smartphone maker Xiaomi has admitted that it places ads in the settings menu of phones with its skin Miui. According to the hardware maker, advertisements are an essential part of the revenue model.

Advertisements are an ‘integral part of Xiaomi’s internet services’, according to the manufacturer in a statement to The Verge . “It is an essential part of our business model, and at the same time we want to keep the user experience right by offering options to disable the ads.” Xiaomi gave the statement after a notification on Reddit of an advertisement in the settings menu.

In addition, Xiaomi is constantly working on its approach to advertising by testing where and when they appear. “Our philosophy is that ads should not be inconvenient and that users should always have the option to receive fewer recommendations,” the manufacturer said.

Xiaomi said earlier this year at its IPO that it promises to sell its smartphones with a maximum profit margin of 5 percent. That is much less than many other manufacturers, who charge a much larger percentage of profit margin. At Apple, according to court documents, this amounted to margins around 50 percent a few years ago.

The Chinese manufacturer earns money with internet services, including its own download store, cloud services and advertisements. By earning money from services, it wants to keep prices low and gain more market share. Xiaomi is not the only smartphone maker with advertisements in its own software. HTC does that too . The ads appear only in Miui, such as Xiaomi which puts on devices like the Pocophone F1 , and are not on Android One phones like the Mi A2 and Mi A2 Lite.

Xiaomi advertisement in settings menu Miui

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