Not 5%: how much Xiaomi actually earns on its smartphones

Xiaomi has published financial indicators for the third quarter and talked about its profit for this period. These figures were commented on by the founder and CEO of Lei Jun, mentioning how much the manufacturer earns on their smartphones.

So, the company’s total revenue in the third quarter amounted to 53.7 billion yuan. This is 5.5% more than in the previous year and the highest figure for the quarter since the founding of Xiaomi.

At the same time, net profit for the quarter amounted to 3.5 billion yuan, and for three quarters – 9.2 billion yuan, which already exceeds the total net profit of 2018.

Commenting on these indicators, Lei Jun noted that the company’s success is a low gross margin of sales, which is 8–9%.Не 5%: сколько на самом деле Xiaomi зарабатывает на своих смартфонах

“I think that a gross margin of 8–9% is very low, and since our sales model is based on e-commerce, the price that the final buyer ultimately pays for the purchase is very low. Most importantly: our own gross margin is very low, and the main sales channels are very short, so the final price in the retail market remains very attractive to buyers. ”

Recall that in April last year, the head of Xiaomi assured that the company will not earn more than 5% on smartphones. And he even promised to give everything that would be more than this limit to his users.

More powerful than Snapdragon 855 Plus and Kirin 990

The first MediaTek Dimensity 1000 chip performance tests appeared on the network.

Popular insider @Xiaomishka shared the first performance tests of the new flagship processor MediaTek Dimensity 1000.
The novelty has already managed to visit all the popular benchmark tests. For example, in Geekbench SoC scores 3811 points in single-core mode and 13136 points in multi-core. In AnTuTu, the platform delivers more than 500,000 points. For comparison, in the October top of the most powerful Android smartphones, the first place is occupied by the Vivo NEX 3 5G with the Snapdragon 855 Plus chip, which did not even cross the mark of 400 thousand points.

Мощнее Snapdragon 855 Plus и Kirin 990: в сети появились первые тесты производительности чипа MediaTek Dimensity 1000
Recall MediaTek Dimensity 1000 is built on a 7-nanometer process technology. It has a built-in 5G modem and four Cortex-A77 performance cores with a maximum clock speed of 2.6 GHz, as well as four energy-efficient Cortex-A55 clocks up to 2.0 GHz. Smartphones based on this chip will be released in early 2020. They say that the first may be the Redmi K30 Pro. By the way, its usual version will be shown on December 10th.