Pan Jiutang also mentioned that among European and American companies, Apple’s retail price/cost can be considered “cost-effective”. Apple also cut its channel costs significantly through its strong brand influence.
In fact, among European and American companies, Apple’s retail price/cost is considered conscientious and cost-effective. Because European and American retail channel costs are also high, Apple has also significantly reduced channel costs through its strong brand influence.
This is not the first time Pan Jiutang mentioned the cost of Xiaomi 11 and iPhone 12. Pan Jiutang stated on December 30 that the cost of the Mi 11 series is similar to that of the iPhone 12. Mi 11 was released on December 28, 2020, and the price starts at 3999 yuan. At the press conference, Xiaomi founder and CEO Lei Jun repeatedly emphasized that the cost of Xiaomi 11 has increased a lot.
In November last year, the investigative company Fomalhaut calculated based on the dismantling of the iPhone 12, and the iPhone 12’s (material) cost price was US$373 (approximately RMB 2,458). At present, the material cost of Xiaomi 11 is not yet known.
It should be noted that the material cost of a mobile phone is affected by the yield rate, and the real cost should be higher than this data. At the same time, the cost of manufacturers in terms of R&D, operation, promotion, and investment in the industrial chain is far from being reflected by these figures.