Pan Jiutang: Apple is considered a cost-effective product among European and American companies because of high channel costs

On January 8th, Counterpoint analyzed that the manufacturing cost of iPhone 12 is higher than that of iPhone 11. The cost of producing a 128GB iPhone 12 mmWave (millimeter wave) will be as high as US$431 (approximately RMB 2800).

In this regard, Pan Jiutang, a partner of the Xiaomi Industry Investment Department, pointed out that in fact, among European and American companies, Apple’s retail price/cost is considered conscientious and cost-effective. Because European and American retail channels are also expensive , Apple has also greatly reduced it through strong brand influence Channel cost.

Pan Jiutang also said that the cost of Xiaomi 11 and iPhone 12 are at the same level , and that Xiaomi 11 products are top-notch, and the pricing is even more extreme.

We know that the starting price of the iPhone 12 Chinese Mainland License version is 6,299 yuan (USD $900) (64GB), while the Xiaomi Mi 11 is 3999 yuan (USD $571) (8GB+128GB), which is very competitive in the same gear.

It is worth noting that the current price of iPhone 12 has been reduced on platforms such as Pinduoduo, and the price of the 64GB version has fallen below 6,000 yuan (USD $857) . Platforms such as JD.com and Apple's online store are still maintaining their initial prices.