The new smartphone from the Redmi brand was superior December 10 / December. It came with several firsts, extremely good equipment and at an unreasonably low price.
Redmi K30 it has such a low selling price that the question arises as to whether it makes a profit at all for the producer.
Premium equipment
When we wrote about the championships, we meant some elements of equipment that no smartphone in the world has yet. It is mainly a new 5G processor Snapdragon 765G, which in addition to supporting 5G mobile networks brings high performance and optimization for gaming. It was manufactured in a 7 nm process as top-class chipsets.
Another element that nominates the Redmi K30 for first place among smartphones is one of the rear cameras. It is a 64 MPx sensor Sony IMX686, which was used for the first time on a smartphone. The equipment of the flagship is also enhanced by a display with a refresh rate of up to 120 Hz.
The Redmi K30 is the first smartphone from Redmi to come with support for 5G mobile networks. At the same time, it is the first smartphone from the Xiaomi concern to be equipped with two front cameras in a perforated display.
The difference between the production and sales price is minimal
From the described equipment elements of the smartphone, it is clear that the cost of production of the Redmi K30 is not cheap. The difference between the production price and the selling price is much lower than we would expect.
The renowned Chinese analytical company has calculated that the cost of producing the Redmi K30 is approximately the same 225 € / 5 740 CZK. The introductory selling price is at the level of 256 € / 6 550 CZK. It follows that the price difference on one smartphone is approximately 31 € / 791 CZK.
In addition, this cost of production does not take into account the whole development and research process that preceded the existence of the Redmi K30 5G itself. The company also did not take into account the costs of assembly or distribution, so the real amount remaining for the manufacturer is even lower.
We have already quoted the top managers of the brand, Xiaomi and Redmi, several times, who admitted, within the framework of the Group's business policy, that the low margin is also behind the brand's success. According to the brand representatives, it is after deducting all costs always less than 5%. The Redmi K30 only confirms these statements.
The equipment of smartphones is improving from year to year and manufacturers are integrating ever better and more perfect elements. This is also reflected in rising prices. But what does not change, at least in Xiaomi, is the amount of profit. Thanks to this policy, Xiaomi and Redmi products are also successful.
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