According to a study by the Counterpoint company, the Xiaomi 12S Ultra with 8 GB of RAM and 256 GB of flash memory costs about 516 dollars in hardware. However, the smartphone went on sale for $ 899.
In the spring of 2018, Xiaomi CEO Lei Jun said that the company would not profit more than 5% from the sale of smartphones, IoT electronic components and all kinds of products. This was a figure that took into account the tax deduction, the cost of brand promotion, and user service. Jun reiterated that in 2019, the company will not raise the price of its smartphones and will be capped at a 5% profit margin.
Xiaomi phones have become more expensive in the last two years
Let’s say that the cost stated here refers to the hardware cost excluding design, R&D, storage, logistics and other aspects. But even in this case, as with all modern Xiaomi smartphones, the profit clearly exceeds 5%. The increase in the price of Xiaomi smartphones has occurred in the last two years, and everyone gradually got used to it. On the other hand, the manufacturer’s Redmi and Poco brands remained relatively affordable.
Experts note that the cost of Xiaomi 12S Ultra equipment is quite high, due to the use of Leica lenses, Snapdragon 8 Plus Gen 1 processor, an excellent display, Xiaomi Surging G1 power management processor and other new components in the smartphone.
After the Xiaomi 12S Ultra went on sale, Lei Jun said that the phone’s user feedback score reached 98%, which is the highest score among high-end Xiaomi products in the last two years. This confirms that Xiaomi is performing better and better on its high-end flagships.
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