$Apple(AAPL)$ The profit margi

The profit margin gap between Xiaomi and Apple lies in two aspects: the profit from selling smartphones and the difference in internet service revenue. Particularly in internet services, which account for 26% of Apple's revenue and have a gross margin as high as 73%. In contrast, Xiaomi's internet services only make up 9% of its total revenue, but the gross margin is also as high as 74%. Xiaomi's competitive advantage is its extremely high cost-performance ratio. This business model is destined to have low profit margins on hardware (selling smartphones) and has to make up for it elsewhere. As for smart cars, I personally believe that, like smartphones, the main profit will come from internet services rather than from selling the cars themselves.

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