RedMi K30: Xiaomi sells it with zero profit or loss according to manufacturing cost analysis.

This week, we had one of her most important presentations Xiaomi for this year, its release Redmi K30, of the first Smartphone mid-range compatible with 5G networks.

ΑThis feature we have only seen in high-end phones so far, with very high prices, usually over $ 1.000 (excluding Xiaomi models), while the new RedMi K30 5G will be available for a price of around $ 284. But how much does its construction really cost the company?

A Chinese analyst has calculated the cost of all the components found inside Redmi K30 5G, without taking into account the costs required by the research and development of the Smartphone, but also the cost of its distribution. In the total cost was calculated only the value of the materials and nothing more.

So as the result of this "research" showed, the final conclusion is surprising, because we could say that Xiaomi is selling the Redmi K30 5G even at a loss.

The construction cost of the RedMi K30 is almost the same as its sale price

Xiaomi is known to sell almost all of its products - including Smartphones - at a profit margin of around 8-9% of their value. But from what appears in the case of the Redmi K30 5G, this percentage is even lower.

According to this Chinese analyst, the value of all the materials of the Redmi K30 5G is 1.730 yuan, or about $ 250. The official retail price (in China) of this Smartphone for the 6 + 64 GB version is 1.999 yuan, or about $ 284.

According to a Chinese analyst,
The cost of components used in #RedmiK30 5G 6 + 64GB varaint is about 1746 Yuan ($ 250)
This price doesn't include research and development, assembly and after sales expenditure !!!
I know it clearly shows the gain is almost zero for Redmi#Redmi pic.twitter.com/odboVhhJ4i

- TechMate? (@ TechMate01) December 13, 2019

That is, we are essentially talking about a hypothetical gain Xiaomi which is about $ 34. All right so far, but there is a serious problem ……

What is the problem ;

As mentioned above, the construction cost of $ 250 includes only its components. To this price, it would be necessary to add the costs of research - development and construction, distribution, promotion, etc.

That is, with almost any Redmi K30 5G sold by Xiaomi, the final profit is non-existent or very low. In fact, we could even talk about losses, since the retail price of the device seems to be lower than what it really costs Xiaomi.

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