Beijing, CHINA – July 15, 2022 – A BoM Analysis shows the marginal profit of Xiaomi 12S Ultra is less than half. In spite of having a large 1-inch Sony IMX 989 camera bunker at the back, it is not the most expensive hardware of the Xiaomi 12S Ultra. Based on Counterpoint Research’s breakdown and analysis of the Bill of Materials (BoM), the overall cost to produce the device is $516.
To give you a text breakdown, the Xiaomi 12S Ultra has hardware upgrades like the all-new 6.73-inch LTPO E5 AMOLED panel, the 8GB LPDDR5 RAM, the latest Snapdragon 8 Gen 1 Plus chip, the aforementioned 50MP 1-inch Sony IMX 989 main camera paired with another hardware from the same company, Sony IMX 586 for ultrawide photos, while the front-facing camera sports an OmniVision OV32C, and the build quality in the named of Glass front (Gorilla Glass Victus), eco-leather back, aluminum frame.
All hardware when combined cost $516 that makes the marginal profit less than half. This calculation does not include the marketing costs, promotional costs, warranty services, and so on.
Based on cost structure, the graph depicts that Qualcomm, Sony, and Samsung take the biggest slice of the pie as their hardware cost more than any of the following hardware.
Although we know that the price of the device price will go higher once it reaches the global market, due to taxes and import charges, we know for a fact that it was expensive to create the ultra-premium flagship phone from Xiaomi.
This marginal profit only shows how much Xiaomi is lowering its prices just to provide the best technology to consumers at the lowest prices possible.
