Only the cost of components already reaches 88% of the price of the device.
The other day, Xiaomi introduced the Redmi K30 smartphone, which once again surprised at its price. Recall that the version with 4G starts at $ 225, and for a modification with 5G they ask for a minimum of $ 285.
How did Xiaomi manage to achieve such a low price? It’s simple: as with most of its other products, Xiaomi makes very little money on the Redmi K30.
The source claims that the cost of components for the production of Redmi K30 5G is about $ 250. That is, even in this case, the earnings on each smartphone is only $ 35, or 12%. However, the cost of components is not all costs. To this amount you need to add the cost of assembly, packaging, logistics, advertising and so on. So, it is likely that Xiaomi in this case earns only about 5%.