The world’s first Qualcomm Snapdragon 888-powered smartphone, the Xiaomi Mi 11, was released in China. The device has an impressive specification sheet: 6.81-inch AMOLED panel with a resolution of 3200 x 1440 and 120Hz refresh rate, a fingerprint sensor under the screen, a triple camera system with a 108 MP main sensor, a 5MP phone unit and a 13MP ultra-wide module, and a 4.600mAh battery with 55W and 50W wired charging support.
The base variant with 8 GB RAM and 128 GB storage costs 3,999 Chinese Yuan (~ $ 612). Western prices have not yet been announced.
That makes the iPhone 12 nearly $ 429 more expensive in China.
Unlike the iPhone 12, the Mi 11 can be purchased as part of a package that includes a charger at no extra cost.
According to a previous report, the estimated cost of the material (BoM) for the iPhone 12 is $ 373. The BoM only shows how much it costs a seller to purchase components needed to manufacture a product, and it does not take into account other expenses such as research and development, salaries and marketing.
Although Xiaomi did not announce the BoM of Mi 11, we know that the company did. promised to keep profit margins low. By contrast, Apple and Samsung are known to keep solid margins on their phones.
Xiaomi’s competitive pricing strategy has helped achieve success in two of the world’s largest smartphone markets – China and India. In the third quarter of 2020, the company Apple as the third largest smartphone maker. This was largely because Xiaomi was aggressively trying to take advantage of Huawei’s market share and Apple’s shipments were suffering due to the delay in launching the iPhone 12 series.