Leaked data reveals how much the parts inside the 6GB OnePlus 7 Pro cost
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The OnePlus 7 Pro features high-end specs like a 6.7-inch curved AMOLED display with a 1440 x 3120 resolution. It is the company's first phone equipped with a 1440p QHD+ display and the screen also features a 90Hz refresh rate. This is 50% faster than the rate found on most phones and provides users with buttery smooth scrolling, an improved video game playing experience and more. There is a triple camera setup on the back and a pop-up 16MP selfie snapper. Configurations available include 6GB of memory with 128GB of storage to as much as 12GB of memory with 256GB of storage. A 4000mAh battery keeps the lights on. And don't forget that the OnePlus 7 Pro is powered by Qualcomm's latest and greatest Mobile Platform.
How Xiaomi manages to keep its profit margins on phones at 5% or less
Comparing the cost of the OnePlus 7 Pro's parts to the parts used on the Apple iPhone XS Max shows some similarities. The 6.5-inch OLED display on the iPhone is priced at approximately $80. Apple pays $72 for the A12 Bionic SoC compared to the $70 OnePlus shells out for the latest Snapdragon chipset for its phone. But there are some discrepancies too. The cameras on the iPhone cost $44, nearly $17 more than what they cost for the OnePlus 7 Pro. Overall, parts and components for the 256GB iPhone XS Max total $443 compared to its retail price of $1,249. Apple obviously enjoys a wider profit margin than OnePlus.

Alleged cost of materials sheet for the 6GB/128GB OnePlus 7 Pro
Now compare Apple and OnePlus to what Xiaomi is trying to accomplish. Known for its "value for money" business policy, the company aims to keep its net profit margins at no higher than 5% on any given handset. Company founder Lei Jun said last year that if a particular phone produces greater than a 5% profit margin, Xiaomi will find other ways to compensate its customers. Back in 2015, former Googler and ex-Xiaomi CEO Hugo Barra explained how the company keeps its margins so low. First, it prices its devices at cost but gives it a long shelf life. This way, as component prices drop over the life of the device, Xiaomi can cut prices and still turn a profit. Barra said that over the 18 to 24-month life of a Xiaomi phone, the product might see its price cut three or four times.

Parts for the 256GB Apple iPhone XS Max cost $443; the phone is sold for $1,249
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