Millet mobile phone cost geometry? Lei Jun counters 1200 cost theory

Before Xiaomi's mobile phone had announced its price, targeting fans, many people speculated that the price should be between 2,500 and 3,000 yuan. However, the low price of 1999 yuan at the press conference on August 16 shocked everyone, which also led to the rumors that “millet costs 1,200 yuan”. Lei Jun recently refuted this statement.

An article on the Internet pointed out that through the analysis of Apple iPhone 4 parts and components, it was found that its cost price was 187.51 US dollars, which is 1198.1 yuan. Therefore, it was speculated that the cost of the millet phone configuration should be around 1200 yuan.

However, Lei Jun refuted this statement when interviewed yesterday. He explained that the cost of Xiaomi’s mobile phone includes the cost of electronic components and materials, taxes and fees, research and development costs, test costs, and rental test costs. The cost of electronic components alone is not lower than 1,200 yuan, so 1200 cost theory is untenable. Lei Jun was very emotional when he talked about this issue. He said: “Welcome any domestic peers to take the Xiaomi cell phone back and disassemble it to see if we are real material.”

Millet mobile phone hardware and materials together not less than 1,200 yuan, also contains tariffs, 17% VAT, 3G patent fees, etc., in addition to the production process, but also because of process problems caused by some mobile phones failed, this material wasted Money also counts in costs. Together with Xiaomi Technology's promise of after-sales service and repair rate, Xiaomi's cost is definitely not less than 1,200 yuan.

Insiders pointed out that the sales price of Xiaomi means that Lei Jun does not want to make money from hardware, but instead uses services and applications as profit-making means. Millet's development, user interaction, business model, and ecological chain construction have fully implemented the thinking of the Internet. This may have an impact on existing game rules and have a profound impact on the domestic industry.