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The OnePlus 7 Pro features high-end features like a 6.7-inch curved AMOLED display with a resolution of 1440 x 3120. This is the company's first phone equipped with a QHD + 1440p display and display also has a refresh rate of 90Hz. This speed is 50% faster than most phones and offers users smooth scrolling, improved gaming experience, and more. There is a triple camera configuration at the back and a 16MP selfie snapper pop-up. Available configurations include 6GB of memory with 128GB of storage, up to 12GB of memory with 256GB of storage. A 4000mAh battery keeps the lights on. And do not forget that the OnePlus 7 Pro is powered by Qualcomm's latest and best mobile platform.
With prices between $ 669 and $ 749, you might think that OnePlus only earns a few dollars on every updated OnePlus 7 Pro. The margins of the manufacturer must be too thin, right? False. A leaked image posted on Weibo (via GizChina) reportedly revealed the cost of the materials used to build the OnePlus 7 Pro 6GB / 128GB version. If the list is legitimate, the AMOLED panel purchased from Samsung is the most expensive part of the device, costing OnePlus just over $ 80 for each screen. The configuration of the rear-facing triple camera (primary 48MP + 8MP telephoto with 3x + ultra wide optical zoom 16MP) costs OnePlus $ 27.29 for each unit. The 6GB RAM LPDDR4X chip is priced at $ 26, while an additional $ 20 secure 128GB storage component. The Snapdragon 855 mobile platform is not cheap either. In fact, after the display, it's the most expensive part of the phone, at $ 70 a pop.
The cost of the parts needed to build the OnePlus 7 Pro 6GB variant is $ 324.21. Of course, this does not include the money spent on R & D, the work needed to assemble the parts, the packaging, the shipping, the marketing and all the other expenses necessary to the construction and sale of a phone these days. This model sells for $ 669, which leaves room for OnePlus to make a substantial profit on each unit sold.
How Xiaomi manages to maintain profit margins on phones at 5% or less
The comparison between the cost of OnePlus 7 Pro parts and those used on the Apple iPhone XS Max shows some similarities. The iPhone's 6.5-inch OLED screen costs around $ 80. Apple pays $ 72 for the Aion Aion Bionic SoC, compared to the $ 70 OnePlus shells for the latest Snapdragon chipset for its phone. But there are also differences. The cameras on the iPhone cost $ 44, almost $ 17 more than the OnePlus 7 Pro. Overall, the 256 GB iPhone XS Max parts and components are $ 443, while the retail price is $ 1,249. Apple obviously enjoys a higher profit margin than OnePlus.
Alleged cost material sheet for OnePlus 7 Pro 6GB / 128GB
Compare now Apple and OnePlus to what Xiaomi is trying to accomplish. Recognized for its "value for money" commercial policy, the company aims to maintain net profit margins of no more than 5% on a given handset. The founder of the company, Lei Jun, said last year that if a particular phone produced a profit margin greater than 5%, Xiaomi would find other ways to pay its customers. In 2015, Hugo Barra, former CEO of Googler and former CEO of Xiaomi, explained how the company keeps its margins so low. First, it allocates a cost price to its devices, but gives it a long life. So, while component prices decline over the life of the device, Xiaomi can lower prices while generating profits. Barra said that during the 18 to 24 month period of a Xiaomi phone, the product could see its price drop three or four times.
The parts for the iPhone XS Max 256 GB cost $ 443; the phone is sold for $ 1,249
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