Smartphonemaker 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 business 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 made the statement after an report on Reddit of an advertisement in the settings menu.
In addition, Xiaomi constantly says to work on his 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,” according to the manufacturer.
Xiaomi said earlier this year at the IPO that it promises to use 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 from internet services, including its own download store, cloud services and advertising. 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 so too . The ads appear only in Miui, such as Xiaomi which puts on devices like the Pocophone F1 and are therefore not on Android One phones like the Mi A2 and Mi A2 Lite.  Xiaomi advertisement in the Miui settings menu.