The world’s first Qualcomm Snapdragon 888 smartphone, the Xiaomi Mi 11, was launched in China. The device has an impressive spec sheet: 6.81-inch AMOLED panel with 3200 x 1440 resolution and 120 Hz refresh rate, fingerprint sensor under the screen, three camera system with 108 MP main sensor, unit 5 MP telephoto and 13 MP ultra-wide module and a 4,600 mAh battery with support for charging 55 W wired and 50 W wireless.
The basic variant with 8 GB of RAM and 128 GB of storage costs 3,999 Chinese Yuan (~ $ 612). Western prices have not yet been announced.
This makes the iPhone 12 almost $ 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 estimate The cost of the bill of materials (BoM) for the iPhone 12 is $ 373. The BoM shows only how much it costs a supplier to purchase the components necessary to manufacture a product and does not take into account other expenses, such as research and development, wages and marketing.
Although Xiaomi did not reveal the BoM of the Mi 11, we know that the company has committed to keeping profit margins low. Apple and Samsung, on the other hand, are known for maintaining heavy margins on their phones.
Xiaomi’s competitive pricing strategy has helped it succeed in two of the world’s largest smartphone markets – China and India. In the third quarter of 2020, the company took down Apple as the third largest smartphone manufacturer. This was mainly because Xiaomi aggressively tried to gain Huawei’s market share and Apple’s shipments suffered because of the delay in launching the iPhone 12 series.