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Xiaomi 12S Ultra: The analysis of the cost of the device's materials gives a small profit margin for the company

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The its construction cost Xiaomi 12S Ultra is quite high, leaving small profit margins to Xiaomi from device sales


Σat the beginning of this month, Xiaomi officially presented us with the 12S series, which includes the flagship of the year in the field of photography – the Xiaomi 12S Ultra.

The Xiaomi 12S Ultra is equipped with premium hardware that includes the Qualcomm Snapdragon 8+ Gen1 SoC, the first Sony IMX989 camera sensor with a size of one inch, but also their camera lenses from Leica.

From the retail price that this smartphone has and the actual cost of the device's materials, we can often deduce the profit margin that the manufacturers have. So according to the analysis practice BOM made by Counterpoint , the cost of materials for the Xiaomi 12S Ultra is about 516 dollars for the version of the device with 8 GB + 256 GB.

At this price, the 67% of the total cost is for the processor, screen, camera and memory. Specifically, the processor costs 128 USD, the screen 89 USD, the camera 79 USD, the memory 58 USD and the Cellular RF system 24 USD.

CAUTION ! : It should be noted that the price mentioned above only refers to the cost of the device materials and does not include design, R&D, storage, logistics costs and other potential costs. If someone makes the mistake of calculating only the cost of the materials, they will be led to the wrong conclusions, as the cost per device goes up quite a bit if the additional costs for the above services are taken into account.

Remember that its retail price Xiaomi 12S Ultra in China, for the version with 8 GB + 256 GB is currently at RMB 5.999 (about $887 based on the current exchange rate)

If from the retail price that the device has, we subtract the cost of materials that are at 516 dollars plus the extra cost incurred by the company, Xiaomi's profit margin on each device sold is quite low. As a comparison, the cost of materials for the Apple iPhone 12, which is slightly cheaper than Xiaomi 12S Ultra, is around $415.

The construction cost for the Xiaomi 12S Ultra is very high, because the device uses new and top-of-the-line hardware, such as :

  • Camera sensor Sony IMX989
  • camera lenses from Leica
  • Snapdragon 8+ Gen 1 SoC from Qualcomm
  • the chip Xiaomi Surge G1 for battery management
  • the charging chip Surge P1 and so on

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Xiaomi Miui Hellas
The official community of Xiaomi and MIUI in Greece.
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