Life in Gurgaon

Manu Kumar Jain explains Xiaomi’s monetisation, ad policies and how it handles user data

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Xiaomi takes pride in describing itself as an internet company. Its business model also revolves around software including value added services and content while skewing the profits margin to a maximum of 5% from its hardware. Advertisements are also a big part of the company’s monetisation efforts.

Xiaomi, however, has faced flak over its decision to put advertisements in MIUI that powers almost all of its phones. Just recently it drew backlash from users over showing ads in Settings. While the company rolled back the controversial feature, it reiterated that Xiaomi will continue with ads in some of its services.

Xiaomi Global Vice President Manu Kumar Jain in an interview with Hindustan Times said that the Ads in the Settings menu was a mistake at the company’s end and that the company does not intend to put ads in any of its core applications.

Explaining how does the company monetise its internet services, Jain explained, “First of all I want to clarify that we are an internet company and the hope and aim is to make money from these internet services and not by selling hardware. Unlike many other smartphone companies their role ends when they sell a smartphone, our job actually starts when you sell a smartphone.”