There’s no denying that Apple is raking a lot of money on iPhones. On the other hand, Xiaomi is constantly reminding its fans that their profit margin for Mi phones — and pretty much all their other products — are not more than 5%.
This is why we’re not surprised when we heard that the respective company’s latest flagship phones, despite having similar manufacturing costs, are being sold at a distant price from each other.
A Chinese analyst named Pan Kiutan revealed that both the Xiaomi Mi 11 and iPhone 12 costs the same amount of money to make. One expert previously revealed that an iPhone 12’s manufacturing cost is around USD373 (around Php17,700), which is rumored to be identical to the Mi 11.
Interestingly, the iPhone 12 costs USD430 (around Php20,700) more than the Mi 11. Bear in mind that this is the manufacturing cost, which only includes raw materials, labor costs, electricity, etc. Meanwhile, product development, marketing, software development, and other external costs are not included.
In the Philippines, the iPhone 12 has a starting price of Php49,990. The Mi 11’s local pricing and availability is yet to be announced. But for reference, its predecessor, the Mi 10, arrived in the Philippines for Php34,590. That’s a Php15,400 price difference. The Mi 11 might get a price hike since it now has a much better display and camera.