Lei Jun's promise, long ago, was not to inflate the sales prices at the expense of a maximum profit margin of 5%, all for the benefit of the end user who will then be able to enjoy a decidedly final selling price appealing to your pockets, without sacrificing the quality and prestige of the product purchased. The last effort of the company was the presentation of the top of the Redmi K30 5G range, which contributed to increase the value of the company's stock exchange but which certainly did not bring particular gains to the holders of shares of the Chinese company.
Redmi K30 5G is the cheapest 5G smartphone in circulation and the promise to maintain profit margins has certainly been maintained. In fact, according to the indiscretions of industry analysts, the production cost of this terminal, for the base model equipped with 6 GB of RAM and 64 GB of internal storage, amounted to 1746 yuan, equal to about 224 euros at current exchange rates. And the figure is not far from the public sale price which amounts to 1999 yuan, equal to about 257 euros at current exchange rates. You understand very well that a gain of 33 euros is definitely ridiculous for such a smartphone, also in consideration of the fact that in the production price the expenses necessary for research and development, assembly and after-sales service are not included. We could almost say that Redmi K30 5G is a gift.
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
Zero earnings for Redmi K30 which is priced at poco higher than production costs
The final surcharge is therefore poco less than a measly 15%, which will probably tend to taper off with the costs just mentioned and with market devaluations, especially in the post-Christmas period. The surprising thing is that other famous brands do not implement the same earnings policy, just think of Apple that for its iPhone 11 Pro Max allocates $ 490 for production compared to a sale of $ 1099, as well as Samsung for its Galaxy S10 + sold for $ 1029 for $ 420. A praise to Xiaomi and a lot of respect for this company that puts the customer before their earnings.
The declared construction prices of Apple and Samsung (which they build in Chinese factories) are very suspicious and almost certainly very inflated, just to make it difficult to understand how much the surcharge (profit) is; a few years ago the tops cost production around 200 euros and now we are at 400-500? Hard to believe ...