When we buy a smartphone, we often make the mistake of evaluating its price high for several reasons. It is very common to consider the cost of a single device as high or low comparing it to the name of a brand. The most fitting example in this case is: Xiaomi makes smartphones that cost poco. But behind it there is much, much more In fact, when an OEM purchases parts of a model from external entities, prices rise exponentially. For this reason our brand has decided to focus on self-production, in partnership with BYD. Let's see the details.
If Xiaomi self-produced materials for its smartphones, then the final cost could decrease: this is the goal in fact
According to a Sohu report, Xiaomi would have initially opened a negotiation, then concluded in the best way, with BYD. This company is a giant that has always been involved in automotive industry. Based in Shenzhen, it is actually the largest Chinese manufacturer in its sector. And what does it have to do with Lei Jun's brand? It has been communicated that the two brands have joined forces to build a common laboratory of over 1000 square meters to be used for the production of new materials. Although the laboratory is jointly established by both parties, almost all of the staff are BYD.
Compared to other domestic smartphone manufacturers, those of Xiaomi have been using OEM solutions from the very beginning: this means that the Chinese giant purchases from third parties the necessary materials such as glass and various plates. Although Xiaomi has established some of its own factories in recent years, most of its own production capacity must be commissioned by third parties. This leads not only to poor management in terms of Costs, but also of control quality.
The story, however, could change in the future as, although most of the workers in the joint laboratory are BYD, the Chinese telephony giant has an important role, namely that of control. In the photo we see Zeng Xuezhong, Vice President of the Xiaomi Group and President of the Mobile Telephony Department, e Wang Nianqiang, CEO of BYD Electronics as they attend the unveiling ceremony.
Need for autonomous development: thus the choice would be justified. Indeed one greater autonomy could bring significant improvements to the devices, resulting in a lower costs. According to what was revealed, the laboratory would have the task of studying materials such as plastic, glass, ceramic and metal shells.
