OnePlus 7 Pro features the flagship-level internals for an affordable price. A mighty Snapdragon 855 processor could be the second reason for its popularity. Because the phone has hit the headlines for its 6.7-inch Fluid AMOLED panel that comes with the 90Hz refresh rate. It offers the buttery smooth scrolling experience and more. The phone also carries a triple camera setup on the rear side along with the pop-up selfie camera. And all these costs around $669 for 6GB and 128GB variant.
Now, you might think, with this price tag by providing the flagship-level internals OnePlus would earn a less profit from units sold. But, you could be wrong. Today, one Weibo user shared a billing chart (via PhoneArena) that shows how much do these all internals cost OnePlus. The chart shows us data of 6GB and 128GB variant. For this particular post, I will be stick with the USD pricing rather than converting it into INR. It will help us to calculate the exact profit margin.
Thinking of the document is legit, the AMOLED panel has been supplied by the Samsung which is the most expensive part among the rest and it costs OnePlus $80.08. While the Snapdragon 855 processor costs $70. It is the second most expensive part in this phone. The rear-facing camera sensors (48MP + 8MP + 16MP) costs $27.29. The 6GB LPDDR4X RAM costs $26. Now, talking about storage, OnePlus has installed UFS 3.0 storage system in OnePlus 7 Pro. So, 128GB storage component costs around $20.
The cost of all parts required to build a 6GB RAM and 128GB storage variant costs around $324.21. However, we should never eat up the R&D cost. So, this total doesn’t include the money spent on R&D, labor needed to assemble parts, packaging cost, shipping cost, advertisement cost, and other marketing expenses. The OnePlus 7 Pro 6GB/128GB variant currently priced at $669. So, it makes a larger price gap. It still leaves enough room for OnePlus to make a healthy profit.
Now if we walk through other smartphone brands, of course, a good example we have is of Xiaomi. The company has claimed that it is making only 5% profit from each device sold in the market. The company currently selling devices in the market under its ‘Value for Money’ policy. However, Xiaomi CEO Lei Jun has confirmed in the future, if the company will earn around 5% of profit then they will find other ways to compensate its customers.
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