The recently introduced budget Xiaomi Red Rice, a quad-core Smartphone with an ultra-affordable $130 price tag, has an incredibly low BOM of just $85. This final figure was obtained by analytics firm Trend Force after they conducted their own research. The firm says that Xiaomi is managing its inventory better than other companies do, and correct they are.
Mind you, the Xiaomi Red Rice is no slouch. You get a 4.7-inch HD (1280 x 720) IPS LCD display, Corning Gorilla Glass 2, 1 GB of RAM, 1.2 GHz quad-core MediaTek MT6589 SoC, 8 MP rear and 1.3 MP front facing cameras, 4 GB of internal storage with a micro SD card slot for expansion, dual SIM card slots and Android 4.2 Jelly Bean out of the box. Out of all the materials, the chipset takes up 20% of the cost, while the display gobbles up an additional 22%.