Why iPhone 12 and Xiaomi Mi 11 cost differently for the same component cost

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Here is the why

iPhone 12 and Xiaomi Mi 11 cost differently for the same component cost

What determines the retail price of a smartphone? In fact, from many indicators. This is the cost of components, and the manufacturer’s costs for scientific research, and advertising, and the volume of production, because it depends on them how much suppliers will sell components to the manufacturer, and even the status of the manufacturer itself. Of course, there are other factors that are either not obvious or unknown to the common man. Another thing is that for some reason everyone is guided only by the cost of components, taking it for the cost price. But it gets even funnier when users compare the cost of components from different smartphones and are indignant about it

iPhone 12 and Xiaomi Mi 11 have identical component prices, but retail prices are different

To begin with, most people don’t even know what the cost of a smartphone is .The cost price is all the costs of producing a whole batch, divided by their number. And the costs, as we mentioned in the paragraph above, can be quite extensive. The cost of components is a very conditional indicator, which means how much a smartphone could cost if it did not need anything other than physical embodiment. That is, equating cost to component costs is as clever as judging the popularity of an iPhone by its classmates.


How much is Xiaomi Mi 11

Xiaomi Mi 11 costs $ 610 in Chinese retail, and iPhone 12 – 800

Pan Jiutang, a partner at the investment arm of Xiaomi Industry Investment, said that the cost of the components of the flagship Xiaomi Mi 11, which retails for $ 610, is approximately equal to that of the iPhone 12. That’s approximately $ 373. Despite the same costs that manufacturers incur when purchasing spare parts for their smartphones, their retail price differs quite significantly, not to mention the fact that the flagship Xiaomi is able to offer users a wider range of functionalities and more advanced technologies.

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Overall, the price difference between the iPhone 12 and the Xiaomi Mi 11 is quite tangible. Apple’s flagship is $ 799 and Xiaomi’s flagship is $ 610. It turns out that the difference is almost a quarter, and there are indeed more advanced technologies in Xiaomi Mi 11. This is at least a display with a refresh rate of 120 Hz, a fingerprint scanner with a combined heart rate monitor and reverse charging. The practical use of the second and third components, of course, is rather doubtful, but there is still no reason to argue with their advancement. Another thing is that the iPhone 12 has no problems with technological perfection either.

Why the iPhone 12 is better than the Xiaomi Mi 11


iPhone 12 still costs more from Apple than Xiaomi

  • First, iPhone 12 has the world’s most powerful mobile processor;
  • Second, it supports Deep Fusion software image enhancement technology;
  • Third, face recognition technology is clearly more expensive than a fingerprint scanner, albeit a display one;
  • Fourth, the iPhone 12 is still one of the few smartphones with UWB support;
  • Fifth, the iPhone 12 will be supported for a minimum of 5 years versus a maximum of 3 years for the Xiaomi Mi 11;
  • Well, sixth, the iPhone has access to a broader ecosystem, including an annual subscription to Apple TV + .


Why iPhone is more expensive than Xiaomi

Xiaomi Mi 11 is good for everyone, but it’s still Xiaomi

Are the key features of the iPhone 12 pulling so Apple can charge it a higher price? It’s hard to say for sure. We still don’t know how much Apple and Xiaomi are spending on research and development and other related costs.But, if you look, then Xiaomi has no moral right to ask for more for its flagship than it is asking now. Well, think for yourself, what smartphone is not really a shame to buy on credit? Of course, an iPhone. And if you borrow xiaomi, you might be considered 

It’s not about my sanctimonious attitude, but the fact that Xiaomi has simply already taught us that it produces cheap smartphones that seem to be “top for their money.” This motto itself indicates that the devices of the Chinese brand should offer an excellent combination of price and performance, while being affordable for everyone. That is, for me – and for most of you, I am sure, too – it is simply unacceptable to pay that kind of money for a smartphone of dubious origin and prospects, albeit with a top-end set of characteristics.

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