Leaked data reveals how much the parts inside the 6GB OnePlus 7 Pro cost
by Alan Friedman / Jul 14, 2019, 12:33 PM
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.
A leaked image posted on Weibo (via GizChina) allegedly reveals the cost of the materials used to build the 6GB/128GB version of the OnePlus 7 Pro. If the list is legit, the AMOLED panel purchased from Samsung is the most expensive part of the device, costing OnePlus slightly over $80 for each screen. The rear-facing triple camera setup (48MP primary + 8MP telephoto with 3x optical zoom + 16MP Ultra-wide) costs OnePlus $27.29 for each unit. The 6GB LPDDR4X RAM chip is priced at $26 while another $20 secures the 128GB storage component. The Snapdragon 855 Mobile Platform isn't cheap either. In fact, after the display, it is the most expensive part of the phone at $70 a pop.With pricing in a range between $669 and $749, one might think that OnePlus is only making a few bucks on each OnePlus 7 Pro that is rung up. The manufacturer's margins must be restaurant thin, right? Wrong.
The cost of the parts required to build the 6GB variant of the OnePlus 7 Pro add up to $324.21. Of course, that doesn't include the money spent on R&D, the labor needed to assemble the parts, packaging, shipping, marketing and all of the other expenses required to build and sell a phone these days. This particular model retails for $669 which still leaves enough room for OnePlus to turn a healthy profit on each unit sold.
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.
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.
Posts: 7187; Member since: Mar 16, 2013
It just goes to show you how over price Apple truly is. So this means the iPhone XR is making a killing at it's $750 USD ($1030 CAD) price tag. The screen on the XR probably costs around $25. You can buy a full HD resolution Android smartphone for around $100. If the XS camera costs $44, then the XR camera must be half that, especially since it's only one camera on the rear. No wonder why Apple can sell globally 14% of the smartphones sold, and make the most money from that percentage of the market.
posted on Jul 14, 2019, 12:55 PM 17
Posts: 719; Member since: Apr 06, 2012
What Xiaomi tells you obviously isn't the truth! Complete Redmi series from Xiaomi is infested with Advertisements inside MIUI, from preloaded apps to settings to UI itself, there is no place where Xiaomi doesn't serve Ads. And one gets full screen banner ads, not just any simple ad. China, India and all other Asian countries get ads served in Xiaomi phones except Europe as Xiaomi is still in nascent stage in there. Once Xiaomi gains a massive foothold they will start showing ads there too. This is how Xiaomi lives on just 5% profit margin. There is always an ugly truth to these Amazing claims. Many people in India are starting to turn away from Xiaomi now due to these spamming ads. With RealMe, Vivo, Asus etc in the VFM game now, people have got options.
posted on Jul 14, 2019, 1:04 PM 2
Posts: 835; Member since: Jun 27, 2016
You are such a j**k....or You have never used Xiaomi phone. I am using Xiaomi device.... Never seen advt. in setting menu. The only place where advt. are shown is Security app (U can simply disable those by restricting data usage for this app) and the app scanner just after each app install. Other then that there are almost no advt.
posted on Jul 14, 2019, 2:00 PM 3
Posts: 6768; Member since: Feb 10, 2012
Says the OnePlus fanboy. You have the nerve to call others fanboys, when all you do is hate on Apple, Samsung, Huawei, Xiaomi, etc... products, all while glorifying OnePlus. Man, I love OnePlus phones, but your hypocrisy is just special. For example, you $h¡t on Chinese phones saying that all they do is spy, yet OnePlus is the one that was caught red handed sending personal data to private servers in China. You campaign against anything that isn't OnePlus is pathetic to say the least.
posted on Jul 14, 2019, 4:39 PM 2
Posts: 18; Member since: Apr 19, 2019
Same here, I'm using a Xiaomi Mi Max 3 and have no problem at all with ads, just restrict data usage and background data usage for the concerned apps in the settings and there you go. Amazing phone, value for money is hard to beat, everyone around me fall in love with the phone as soon as they touch it and even more when they hear how much it cost.
posted on Jul 14, 2019, 4:10 PM 1
Posts: 189; Member since: Mar 01, 2019
Lol you fandroids actually think parts are the only cost of phones No Apple has actual thousands of retail stores all over the world across many countries which cost money to build and maintain as well as hiring and paying employees to sell their own products Where as most of all androids are selling in stores operated by other companies so they aren’t pay people to work at their own stores
posted on Jul 14, 2019, 2:14 PM 0
Posts: 1306; Member since: Mar 29, 2019
Samsung as an Android OEM has factories. Samsung spends far and away more money than Apple when you consider they distribute more products, in more countries, with factories and more. Samsung has some stores too. Apple only had close to 100,000 employees, while Samsung had 300,000+. You are a joke bruh. Just shut-up talking before thinking.
posted on Jul 14, 2019, 7:04 PM 1
Posts: 7190; Member since: Dec 02, 2011
OnePlus margin is 51%, iPhone margin is 64%. Considering the R&D alone, Apple spent 11B while op spent a few millions; considering the price of the os, Apple spends a s**tload of money for iOS (op gets it for free - with Google’s quirks); considering the people that work for Suport and in physical places, there’s another batch of expenses that only one company has. I can go on, but the 2 companies cannot be compared, because one of them is as big as the other one subscriber base in a single us city.
posted on Jul 15, 2019, 1:06 AM 1
Posts: 2210; Member since: May 04, 2015
Leo Oneplus isn't some small Chinese start up, despite how they're portrayed by some people, they're owned by BBK. So when you're doing your misinformed calculations include Vivo and Oppo in those R&D numbers. In addition, BBK via Oppo sponsored Wimbledon and the Cricket World Cup this year whilst having thousands of retail outlets throughout Asia. Vivo also sponsored the Cricket Indian Premier League and the 2018 Football World Cup. Yes, that's not Oneplus but that's the family it belongs to and the clout it benefits from. The point remains that Apple are greedy simply because they don't offer anything to justify such extortionate prices.
posted on Jul 15, 2019, 3:30 AM 0
Posts: 7190; Member since: Dec 02, 2011
What you are saying is: “Apple is owned (partly) by Vanguard - the company that owns (partly) Google - so in calculating Apple’s R&D I have to account Google’s expenses too; also, every time Gates foundation makes a donation, Apple makes that donation (because VG also owns a big part of Microsoft).” What you say is absolutely irrelevant, because we compare the companies and their activities, not their stockholders. Let me give you a simple example: the fact that op is allowed to sell its phones in Oppo stores, it means that it doesn’t have distribution expenses; the fact that it uses R&D developed by bbk group, means that op doesn’t have those expenses either; than why does OnePlus phone has such a big margin when it’s expenses are so low? Don’t you think it’s... greed?
posted on Jul 16, 2019, 3:42 AM 0
Posts: 1; Member since: Jul 15, 2019
Both Apple and OnePlus are greedy, no need to argue the Apple side and OnePlus benefits from BBK overhead R&D. Now regarding Xiaomi.. they're just stupid and I'm on my 4th Redmi in Holland. The model fragmentation is even worse then the general Android fragmentation. The 5% margin is great but absolutely does nothing for Xiaomi or the customer if they allow the resellers to make a multitude of profit.. never have I ever been able to buy a Xiaomi phone at the MSRP announced at introduction and j have bought my phone's after plentifull shopping/negotiating around various run down malls in Singapore, Hong Kong and Jakarta and also online. Finally I call out the statement of long shelf life... 18 months or even 2 years is absolutely nothing if you don't buy the phone in its first few months of release which is generally impossible due to the demand and pricing by resellers. On top of that Xiaomi is ultimately lacking in android updates, most phone's will only see one version update, if even that... Prices keep creeping up and along with the aforementioned.., this may well be my last Redmi. Advertisement wise, no complaints. No settings changed and no appearant advertisements but maybe that's because they never update my android version..
posted on Jul 15, 2019, 1:13 PM 0
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