We brought a few days ago article on part of production costs smartphone Xiaomi Mi 10 / Pro. This was a small justification for the higher price of the new flagships from Xiaomi, which is understandable in this regard.
Analysis of the Mi 10 components yielded surprising findings
This time, however, the Techinsights team focused on an in-depth analysis of the manufacturing costs of the Xiaomi Mi 10 Pro with 12 GB of RAM and 256 GB of storage. The resulting price is surprising, but even more disappointment caused the comparison with the iPhone 11 Pro Max.
Based on a price analysis of the individual components used in the Xiaomi Mi 10 Pro, Techinsights issued an estimate of production costs. The final production price of this model could be around $ 440, which is approximately 402 € / 10 164 CZK.
A similar price analysis was performed on Apple devices, specifically on the iPhone 11 Pro Max 512 GB. The production costs of this smartphone were reduced to approximately $ 490 (€ 447 / CZK 11). It would not be strange for this if we do not take into account the sales prices of both devices.
While the researched version of the Xiaomi Mi 10 is sold in China for about 618 € / 15 625 CZK, compared iPhone costs about 1 € / 100 CZK.
Needless to say, Apple is one of the most expensive brands and their margins are among the largest. In this case, the profit is more than 100% if we do not take into account research, development, advertising and marketing in general.
On the other hand, Xiaomi strictly adheres to its pricing policy and is becoming more and more successful as a result. Xiaomi's CEO Lei Jun has explained in the past what is the company's margin and what is the reason.
As you can see, Xiaomi's margin is much more modest in this case as well, and net profit is further reduced by the costs of research and development, advertising, transport and logistics. Let's not forget that the Xiaomi Mi 10 is a "revolutionary" smartphone from Xiaomi, which means great technological progress in several indicators.
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