The cost of red rice cell phone with a price of 799 yuan is about 520 yuan, which is difficult for m

Red rice mobile phone has gone through three rounds of rush buying, so did you get it? A recent survey shows that the cost price of red rice mobile phone is only about 520 yuan, while the price is 799 yuan. Do you know where Xiaomi's profit model is from?

According to trendforce survey, due to the decrease of the total cost of smart phones, the proportion of low-cost smart phones under $150 in 2014 increased from 11% in 2013 to 14%; In 2014, the proportion of middle price smartphones between $150 and $450 also exceeded 50%. Therefore, low and medium price products have a decisive influence on smartphone manufacturers to increase their market share.

Xiaomi launched a red rice machine priced at 799 yuan in China this quarter. By analyzing its hardware, the mt6589 (T) main chip of MediaTek accounts for 20% of the total cost, while the 4.7-inch IPS retina panel of Youda accounts for 22% of the total cost. The 312ppi high-definition panel specification has obvious advantages over the current 220ppi panel of general Chinese thousand yuan smart phones.

According to the cost table of components, in the fourth quarter of 2013, the cost of red rice machine is estimated to be about 85 US dollars (about 520 yuan), while the price of 799 yuan on the market is about 130 US dollars. Generally, if the mobile phone manufacturers only rely on the hardware sales, it is difficult to make profits under this sales price.

Because Xiaomi doesn't adopt the traditional channel sales mode, it relies on the network sales, takes the red rice mobile phone as the hardware platform, focuses on the software revenue and advertising revenue, and develops a new profit model of smart phone.