I admit that Xiaomi was letting the advertisement display on the setting screen of the smartphone

Xiaomi, which is gaining popularity due to high cost performance against specs, acknowledged that the ads were displayed on the setting menus of some models. Although it is somewhat surprised if it does somewhat, on the other hand it is also the basis of the company's business strategy.

Xiaomi admits to putting ads in the settings menu of its phones - The Verge
https://www.theverge.com/2018/9/19/17877970/xiaomi-ads-settings-menu-android-phones

The beginning of thing was the writing that Xiaomi smartphone users posted to reddit's Xiaomi category. A part of Xiaomi's model has installed firmware called MIUI that realizes its own UI, and these models are equipped with a system application called "MSA". Users who updated this MIUI to version 8.9.13 wrote that "Advertising has increased so much", users who appeared in the same state appeared.

Safe to uninstall / freeze msa?: Xiaomi
https://www.reddit.com/r/Xiaomi/comments/9g1mbc/safe_to_uninstallfreeze_msa/

That advertisement is Kore. In the "Manage apps" of the setting screen, advertisement of "Premise" application with the message "Make money with your Android terminal in Kuala Lumpur" is displayed.

In response to this, when The Verge of IT-based media got interviewed Xiaomi, the following answer came back.

Advertising has been and will continue to be an integral part of Xiaomi's Internet services, a key component of the company's business model. At the same time, we will uphold user experience by offering options to turn off the ads and by constantly improving our approach towards Our philosophy is that ads should be unobtrusive, and users always have the option of receiving fewer recommendations.

Advertisement continues to be an integral part of Xiaomi's Internet service and will continue to be an important element of our business model.At the same time we provide an option to not display ads , Constantly improving the approach to advertisements, such as by adjusting the place and timing of advertisements, etc. We will keep the user experience, ads must be modest, users will always "recommend" It is Xiaomi's philosophy that it should be given an option to reduce it)

Xiaomi's business model is not simply "to produce and sell smartphone terminals to generate profits", but instead to sell cheaply to increase the number of users, "suggest" the service to that user or retail It is a model of urging the purchase of goods. Therefore, Xiaomi's smartphone excluding high-priced models may display such advertisements.

As mentioned in Xiaomi's comment, this advertisement can be reduced or hidden according to user's setting. However, as the reddit user pointed out, it is currently said that advertisements are being displayed despite setting hidden settings.

On Android smartphones, this kind of advertisement display is not uncommon, and Samsung has also displayed advertisements to users. Xiaomi has now become the world's fourth largest smartphone maker, but from now on, it seems that it will be required to find the best point between pursuit of profit by displaying advertisement and user's convenience is.