On December 10, the Xiaomi sub-brand unveiled its new generation Redmi K30 . A new series led by an attractive Redmi K30 5G that has become the cheapest smartphone with 5G support on the market , in addition to being the first to incorporate certain technology inside.
Whether for its new Snapdragon 765G or for its spectacular SONY IMX686 main camera, the new Flami Killer from Redmi is positioned as the first smartphone on the market to incorporate these technologies. Undoubtedly, a great bet that they place it at a level well above what we are used to seeing in the range of Redmi smartphones and that will probably mark a before and after in Xiaomi.
The profit range of the new Redmi K30 is well below what we imagine
It has always been known that the success of Xiaomi and its attractive prices are based on the fact of cutting the profit range well below what is usual. We speak of a 10% or even up to 5% profit , which apparently has been repeated with the launch of the Redmi K30.
In detail, as reported by TechMate, a renowned Chinese analyst, the manufacturing cost of the new Redmi K30 5G stands at $ 250 , about 225 euros to change. A cost that if we compare it with its price to the public, that is to say the 284 dollars (€ 255), the range of profit of the firm returns to be extremely adjusted.
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 cost of research and development, Assembly and after sales expenditure !!!
So it clearly shows the gain is almost zero for Redmi #Redmi pic.twitter.com/odboVhhJ4i
– TechMate🤖 (@ TechMate01) December 13, 2019
In addition, this manufacturing price does not take into account the entire development and research process that was carried out until the existence of the Redmi K30 5G as such. Likewise, TechMate has not taken into account the costs of assembly or distribution, so if the benefit was already cut enough, in reality it could be even more.
With this, although in some way Xiaomi and Redmi have slightly raised the price of their smartphones, the profit range remains the same , that is, very low or even non-existent in many occasions. In this way, the smartphones of the Chinese firm are still the best in terms of quality / price, offering the best possible price without inflating their costs as do other brands.