OnePlus 7 Pro has advanced parameters such as Snapdragon 855 chip, curved AMOLED screen 6.7 inches with a resolution of 3120 x 1440 pixels. This is also the first smartphone of Chinese company equipped with QHD + screen with 90Hz refresh rate. This speed is 50% faster than most smartphones in the market, providing users with a smooth experience when surfing the web, playing games, watching videos …
The back of the OnePlus 7 Pro has 3 cameras with the main camera 48MP while the front is a 16MP camera. Configuration options include 6GB / 128GB and up to 12GB / 256GB. 4.000mAh battery.
With prices ranging from 669 to 749 USD, people may think that the OnePlus earns only a few dollars on every OnePlus 7 Pro sold. The profit level calculated on each device will probably be very small?
But reality is contrary to everyone's thoughts. A photo of the price of the OnePlus 7 Pro 6GB / 128GB version has just been posted on Weibo, showing that OnePlus earns quite a bit of revenue from each of their new flagships.
If this picture is correct, the most expensive component of the OnePlus 7 Pro is an AMOLED screen purchased from Samsung, priced at more than $ 80 per unit. The cluster of 3 rear cameras including 48MP + 8MP + 16MP sensors costs $ 27.29, RAM of 6GB LPDDR4X costs $ 26 while the 128GB ROM costs $ 20. The Snapdragon 855 chip is also not cheap, 70 USD per unit.
In total, components cost for a OnePlus 7 Pro 6GB / 128GB is 324.21 USD. Although this figure does not take into account R&D costs, labor costs for assembly, packaging, transportation, marketing …. but with a retail price of US $ 669, OnePlus still pocketed a large sum of money on each flagship. sold out.
There are a few similarities when comparing the price of OnePlus 7 Pro components with Apple iPhone XS Max. The 6.5-inch OLED screen on the iPhone costs approximately 80 USD. Apple pays about 72 USD for A12 Bionic chips compared to 70 USD OnePlus for Snapdragon 855.
However, there are also some differences such as the dual camera cluster on the iPhone that costs $ 44, which is nearly $ 17 more than the three-camera cluster on the OnePlus 7 Pro. Overall, Apple paid $ 443 for components that make up the iPhone XS Max 256GB while retailing it for $ 1,249. Clearly Apple has a much higher profit margin than OnePlus.
Perhaps Xiaomi is the company with the least profit in the smartphone village. Xiaomi has always committed not to gain higher profit than 5% on any hardware sold by the company. If the profit is higher than 5%, Xiaomi will find ways to compensate customers.
In 2015, former Google employee and former CEO of Xiaomi, Hugo Barra explained how Xiaomi maintained a profit margin of less than 5%. According to Barra, Xiaomi set the initial price of the device at a high level but sold them for a long time. In this way, in the life cycle of equipment when components are discounted, Xiaomi can reduce the price and still be profitable. Barr shared that during the 18- to 24-month life cycle, a Xiaomi device can cut prices by 3 or 4 times.