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Xiaomi is able to sell its devices so cheap because it saves money elsewhere. It hardly spends anything on advertising, and it mostly sells its devices online.

Hence, it has no massive marketing budget to offset. Nor does it have all the costs associated with stocking handsets in shops.

Samsung, by contrast, had a marketing budget of $14 billion (£8.5 billion) in 2013. That’s the biggest of any company, ever.

Instead of splurging on advertising, Xiaomi devices are talked about on social media by offering great specs for a low price. They effectively advertise themselves.

Xiaomi has another neat trick up its sleeve too, one which engages the user unlike any other…