Xiaomi Red Rice materials cost just $85, quad-core phone priced at $130

One of the most talked about phones in Asia is the Xiamoi Red Rice. The reason for the buzz is the remarkably low price of $130 (U.S. Dollar equivalent) for a handset using a quad-core processor with a screen offering a pixel density of 312ppi. Analytics firm Trend Force found that the phone has $85 worth of materials inside the device, led by the MediaTek MT6589 processor which accounts for 20% of the phone's manufacturing cost. The 4.7 inch IPS panel makes up 22% of the phone's cost and sports 720 x 1280 resolution. Gorilla Glass 2 protects the display from scratches and cracks.
 
In addition to the nice fat profit margins, Trend Force says that the company is managing its inventory better than its competitors do. On board the unit is 1GB of RAM. The back and front facing cameras weigh in at 8MP and 1.3MP respectively and Android 4.2 is pre-installed. There is 4GB of native storage which can be expanded by using the microSD slot. Dual SIM slots are also included.

Even though the Xiaomi Red Rice is a serviceable handset designed to attract first time smartphone or Android users, it still can handle more than most entry level models. And with a gross profit margin of 35%, Xiamoi is doing quite well, thank you. The profits from the Red Rice help it fund the development of other models.


source: SlashGear