The Xiaomi 12S Ultra retails for $890, but it only costs $516 to make

Admin, Thursday, July 21, 2022
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Xiaomi 12S Ultra is back

Hadley Simmons / Android Authority

tl; DR

  • The Xiaomi 12S Ultra is said to cost $516.
  • The Xiaomi device was launched in China for ~$890.
  • This does not reflect the other costs associated with the smartphone.

The Xiaomi 12S Ultra is the company’s featured flagship for 2022, offering plenty of features and being part of the first wave of Leica-branded Xiaomi smartphones. The phone is only available in China for 5999 Yuan (~$890), but we now seem to have an idea of ​​how much it will cost to make.

Counterpoint Research Compile a bill of materials analysis for the Xiaomi 12S Ultra, claiming that the base model 8GB/256GB costs $516. The tracking company says its sub-camera, display and processing systems account for nearly two-thirds of the cost.

Xiaomi 12S Ultra BOM Counterpoint Research

That doesn’t mean Xiaomi makes $374 on every 12S Ultra sold, as the bill of materials doesn’t take into account costs like research and development, marketing and other forms of business.

However, this recognition comes a few years after Xiaomi committed to a 5% profit margin on its smartphones. So what does the 12S Ultra version of this profit margin cap mean? Well, last year’s Mi 11 Ultra might give us an idea, as it was the company’s first premium flagship phone.

“We will always maintain a gross margin of 5% across all of our hardware business,” the company previously told us when we asked about the margin cap in the wake of the Mi 11 Ultra’s launch last year.

The statement notes that there is room for maneuver for individual products to get profit margins higher or lower, as long as the profit margin for the entire hardware business is limited to 5%.

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