From the price and material cost of the phone, we can often derive the profit margin of cell phone manufacturers. According to the Counterpoint report, the hardware cost of the Xiaomi 12S Ultra (8GB+256GB) is about RMB 3,500, while the 8GB+256GB version of the phone is currently priced at RMB 5,999 on Xiaomi Mall.
Note that the cost mentioned here refers to the hardware cost alone, not including the cost of design, research and development, warehousing, logistics and other aspects of the cost of fees.
The hardware cost alone, Xiaomi 12S Ultra to 3500 yuan, plus the cost of other links, the machine’s profit margin does not look high. As a comparison, the material cost of the iPhone 12, which is slightly less expensive than the Xiaomi 12S Ultra, is about 2,600 yuan.
The hardware cost of Xiaomi 12S Ultra is expensive because the machine uses a lot of new hardware, like Leica lens, Snapdragon 8+ mobile platform, Xiaomi Surge G1 battery management chip and so on. Lei Jun has said that the Leica lens is a bit expensive, even he is a bit heartbroken.
After the Xiaomi 12S Ultra went on sale, Lei Jun said the machine’s positive feedback was as high as 98%, which is Xiaomi’s highest positive feedback for high-end products in the past two years. This shows that Xiaomi is doing better and better on high-end flagships.
