Even people far from the tech industry know that Apple makes a lot of money from the iPhone and the lion’s share of the revenue in the smartphone market settles in its “pockets”. This is because it sets a decent markup on its products. This can not be said about Xiaomi, which regularly reminds that it does not make a lot of money from smartphone sales and that the profit margin does not exceed 5%.
Xiaomi Mi 11 and iPhone 12 manufacturing costs are identical
Whether the company has deviated from this principle in the case of the Xiaomi Mi 11 is hard to say for sure. But it sells the basic version of the flagship for $250 more than its cost. Where does this conclusion come from? Recently, the authoritative Chinese analyst Pan Jiutan announced that the manufacturing cost of the Xiaomi Mi 11 is similar to the iPhone 12. Recall that earlier, experts calculated that the prime cost of the iPhone 12 is $373. But at the same time; the version with 128 GB of memory in China is sold for $430 more than the Xiaomi Mi 11.
Another thing is that the prime cost does not reflect all the costs of the company for the creation, production and promotion of devices. It includes only materials, wages, energy resources, administrative costs and third-party services. Software development, design, advertising and logistics costs are not included.
iPhone 12 sales are 21% better than the iPhone 11
The latest data from research firm CounterPoint indicate that total shipments of the iPhone family in the fourth quarter were up 21% year-over-year; mainly due to the strong performance of the iPhone 12.
Comparing sales in the first six weeks; the iPhone 12 sold worse than its predecessor only in the second week; and showed better results in all other weeks.
Given that the holidays are not over yet; we can expect that the iPhone 12 will set a record for the year; and will also continue to be in demand next year.
Currently, when ordering the iPhone 12 Pro and iPhone 12 Pro Max in several countries; buyers are still going to wait for it from several days to several weeks.
Apple is increasing orders of the iPhone 12 series
According to AppleInsider, the Cupertino-based company has increased the number of orders for the iPhone 12 for the first quarter of next year. The iPhone 12 series is enjoying great success in the market. Demand should continue next year and remain steadily high.
According to analysts’ forecast; the number of iPhone 12 shipments will be about 51 million units in the first quarter of 2021. Previously, it was believed that in the first quarter the company will ship about 47 million units. The increase in shipments will primarily affect the iPhone 12, iPhone 12 Pro and iPhone 12 Pro Max. The estimates point that shipments of the cheaper iPhone 12 mini will remain relatively unchanged during this period.
Analysts believe iPhone 12 shipments will grow 38% year over year. An important market for Apple is China, where more than 6 million iPhone 12 units were shipped in November 2020 alone, that is, about 20% of total shipments worldwide. This is a new record for the past few years.