How big is the profit of mobile phones?

What we know about Xiaomi mobile phone is its high cost performance. Lei Jun once admitted that the comprehensive net profit of Xiaomi hardware does not exceed 5%; And Luo Yonghao once said: We don't make money by making mobile phones, just to make friends. So, doesn't the smartphone industry make money? In fact, the reason why the net profit does not exceed 5% is actually because various costs such as R&D investment, marketing promotion, mobile phone patent fees and channel sharing have been covered.

It is reported that the overall profit rate of the mobile phone industry is not high. Especially for low-end models, mobile phones with cost-effective advantages have lower profits. Most of the net profit generated by smartphone sales every year is taken away by Apple and Samsung. Apple is recognized as the manufacturer with the largest profit margin. The reason is that it is not difficult to find that Apple has done a good job in cost control, and the principle is "free if you can". Coupled with factors such as brand premium, Apple's mobile phone profit is much higher than the industry average.

Just like the picture above, Tech.

Insights' report on the disassembly cost of iPhone is not difficult to verify the fact that Apple's profit is high. iPhone XS

Take the Max(256G) version as an example, the total cost is 443 US dollars (about RMB 3 126 yuan). But its price is as high as 10 thousand. From this, we also found a detailed part. The biggest cost of the iPhone is reflected in the screen part, with a single screen accounting for more than 80 dollars. For a long time, the organic light-emitting diode screen has been almost monopolized by Samsung, which is not difficult to understand why the screen cost in iPhone accounts for a relatively large proportion.

Let's take a look at the profit statistics of mobile phone manufacturers released by Q2 last year. Apple is the first, accounting for 62% of the profits; Huawei, which ranks third, only accounts for 8%. Undoubtedly, part of the influencing factors will be Huawei's hundreds of millions of R&D investment costs and high investment in offline channels.

The profit of Xiaomi, which focuses on cost performance, is lower, which seems to verify the statement that Lei Jun's profit margin does not exceed 5%. Of course, the estimated data of these relevant institutions are only for reference. After all, manufacturers generally do not disclose costs to the outside world. It is naturally important to control the hardware cost, but more attention should be paid to the profit and marketing of mobile phones in R&D.