Counterpoint found that the Xiaomi 12S Ultra, which has 8GB RAM and 256GB flash memory, costs $517. The smartphone, however, went on sale for $887.
Lei Jun, Xiaomi CEO, stated that the company will not accept more than 5% profit from the sale IoT electronic parts and smartphones. This figure includes taxes, brand promotion costs and customer service. He reiterated that the company would not charge too much for its smartphones in 2019, and that it would limit itself to a profit margin below 5%.
It is important to note that the component cost calculation does not include R & D, warehousing, logistics and marketing. As with all modern Xiaomi smartphones, this profit is clearly higher than 5%. Over the last two years, Xiaomi smartphones have seen a rise in prices. This has been something that everyone has become used to.
Experts agree that Xiaomi 12S Ultra equipment costs quite high because it uses Leica lenses, Snapdragon8 Plus Gen 1 mobile platform and excellent screen.
Lei Jun stated that the Xiaomi 12S Ultra’s user feedback rating was 98%. This is the highest among high-end Xiaomi products over the past two years. This shows that Xiaomi is improving on flagships of high-end quality.