3, MENARA SENTRAL, PENANG STREET, 10200 PENANG.

TEL: 04-2621888
ASSIGNMENT COVER PAGE
COURSE TITLE: MANAGING COSTS & FINANCES
COURSE CODE: AMC 3213
SEMESTER/YEAR: APRIL/2023
LECTURER: MS. SASIREKA LAGAVAMBULIAN
Plagiarism

Plagiarism is the misrepresentation of the work of others as one’s own (including ideas,
arguments, words, diagrams, images, or data). It includes the explicit claim that another
person’s work is one’s own and the failure to adequately acknowledge the sources used.
Plagiarism is academic misconduct and will be penalized accordingly.

Declaration

I certify that this assignment is a result of my independent work and investigation. The use of
material from other sources has been properly and fully acknowledged in this assignment. A
bibliography is appended. I fully understand the consequence of committing plagiarism, and
if proven and in the absence of mitigating circumstances, it could include failure in the Year
or part of my course or even withdrawal from the program.

I declare that this assignment is in full compliance with the above requirements.

STUDENT NAME LAVANYA SANGARA MURTHY,

LEE JING ROU, HO YI XIAN
STUDENT ID SC07210067DA,
SC07210045DA, SC07210051DA
SIGNATURE Lavanya, Jing Rou, Yi Xian
DATE 30 MAY 2023

1
Contents
INTRODUCTION...............................................................................................................................3
PRODUCTION OF XIAOMI PHONE..............................................................................................7
STEP 1: SELECTION OF COMPONENT MANUFACTURERS...............................................8
STEP 2: SELECTING MATERIALS............................................................................................9
STEP 3: MACHINING ACTIVITIES..........................................................................................10
STEP 4: POLISHING...................................................................................................................13
STEP 5: PRODUCT TESTING....................................................................................................13
STEP 6: ASSEMBLING................................................................................................................15
STEP 7: DELIVERY.....................................................................................................................17
XIAOMI PHONE VS. IPHONE.......................................................................................................18
PRODUCTION OF XIAOMI VACUUM ROBOT.........................................................................21
STEP 1: SELECTION OF COMPONENT MANUFACTURERS.............................................22
STEP 2: SELECTING MATERIALS..........................................................................................23
STEP 3: MACHINING ACTIVITIES..........................................................................................24
STEP 4: POLISHING...................................................................................................................25
STEP 5: PRODUCT TESTING....................................................................................................26
STEP 6: ASSEMBLING................................................................................................................27
STEP 7: DELIVERY.....................................................................................................................29
COMPARISON BETWEEN XIAOMI ROBOT VACUUM MOP 2 AND SAMSUNG
POWERBOT ESSENTIAL..............................................................................................................30
COST CLASSIFICATION FOR XIAOMI SMARTPHONES......................................................32
COST CLASSIFICATION FOR XIAOMI VACUUM ROBOT....................................................34

2
INTRODUCTION
Xiaomi is a Chinese, technology start-up that emerged in Beijing, China in April 2010. Lei
Jun, the company’s founding father, was 53 years old at the time and now is a multibillionaire. The
“mi” refers to “Mobile Internet” in the company’s logo. Meanwhile, it also bears the sense of
“Mission Impossible” at the same time, which indicates the barriers that seemed tough to get past
Xiaomi at the early stage of the business. Likewise, Xiaomi’s mission is to offer high-quality products
at cost-effective prices as well as to enable consumers all around the world to live a greater quality of
life through intelligent innovations.

Diagram
1 shows Xiaomi’s head office in Beijing, while diagram 2 is the photo of Xiaomi’s founder, Lei Jun.

Xiaomi operates in three main industry segments: which are hardware, online services, and E-
commerce & New Retail. In addition, it concentrates mainly on the development, production, and
commercialization of mobile devices, smart homes, and laptop accessories and lifestyles. It produces
and trades smartphones, robot vacuum cleaners, smartwatches, headphones, speakers, laptops, home
security cameras, electric scooters, and a variety of other items are among its offerings. As a result, it
has been recognized as a multinational electronics firm with a wide range of offerings.

Diagram 3 shows the classification of Xiaomi’s products offered in the market.

In the year of 2011, Xiaomi was entering the smartphone market with the introduction of the
Mi One phone. The team of Xiaomi company has concentrated and prioritized developing high-
quality gadgets and distributing the devices at cheaper prices compared to other alternatives that exist
in the market, to earn income via the services and content of Xiaomi’s corporation. As an early

3
pioneer of e-commerce retailing of smartphones, Xiaomi utilizes Android as its operating system yet
has its personalized user interface, which is known as MIUI. MIUI is intended to provide enhanced
features and an improved user experience than Android. However, since Xiaomi’s development in
China has stagnated due to greater competition, the corporation has shifted its focus to other countries.
As a consequence, Xiaomi has risen to the top of Indian smartphone manufacturing and has gained
market share in Europe. MIUI received the praise that it deserved. According to sources of
information, MIUI's MAU (Monthly Active Users) rose to 330.7 million globally in March 2020.
Presently, the corporation offers numerous products other than just phones, as well as smartphone
applications, wearable technology, household items, and intelligent home devices.

Diagram 4 displays Xiaomi’s first smartphone, Mi One phone, while diagram 5 shows the new
features of MIUI 14 in Xiaomi’s phones.

Diagram 6 indicates that the YoY Growth of Xiaomi’s market share in Europe increased by 65% in Q2
2020.

4
Diagram 7 demonstrates that Xiaomi gained the biggest percentage of India’s smartphone market
share for 2020 and 2021.

Aside from that, Xiaomi refers to itself as the world’s second-largest phone manufacturer, not
just in China. Xiaomi was then rapidly diversified over the globe after achieving significant success in
India. In just a matter of years, the firm has proven itself as an international technology innovator,
with various products and brands. Considering such a large assortment, a systematic and efficient
registration of trademarks approach becomes an absolute need for Xiaomi. In short, Xiaomi has
advanced substantially in terms of marketing and supply options in the past 12 years. The enterprise
has grown to over 30,000 staff internationally and is a Fortune 500 firm with goods offered in over
100 nations and areas throughout the globe. Furthermore, Xiaomi is regarded as one of the worldwide
major digital corporations, as well as part of the biggest worldwide smartphone producers
alongside Apple, Samsung, and Huawei. As reported by Forbes, it is listed as part of the globe's top
2000 biggest publicly traded enterprises as well as one of the Highly Regarded firms.

5
Diagrams 8 to 10 prove the achievement Xiaomi gained from the year 2021 to 2022.

Last but not least, this paper is going to demonstrate how Xiaomi’s products are manufactured, with
the goods chosen including the Xiaomi smartphones and Xiaomi vacuum robots. Moreover, the
manufacturing cost and operational cost will be identified through the production of the selected
manufactured goods.

6
PRODUCTION OF XIAOMI PHONE
XIAOMI is a Chinese electronics company that is known for producing some of the best
smartphones in the world. XIAOMI phones are very popular because they have good build
quality and high-end features, and they are offered at a relatively affordable price compared
to other smartphone brands.

The production of XIAOMI phones starts with the design and research and development
(R&D) stages. XIAOMI has a team of engineers and designers who are responsible for
creating the phone’s design and specifications. They also conduct research on the latest
technology and user needs to ensure that the phone is up to date.

Once the design is finalized, the production stage begins. The production of XIAOMI phones
involves different stages, starting with the procurement of the necessary raw materials.
XIAOMI sources its raw materials from different suppliers located all over the world.

After the raw materials are procured, they are sent to the production line where the phone
assembly process begins. The process involves the different components of the phone like the
motherboard, battery, camera, and others being assembled into a single unit. The components
are integrated into the phone’s chassis, and the phone’s outer shell is added.

The quality control team then checks the phone’s quality to ensure that they meet the
company’s standards. During this stage, all features and functions are tested, such as the
phone’s battery, camera, display, and other hardware and software features.

After the quality control stage, the phone is packed and shipped to different markets.
XIAOMI has an extensive distribution network that includes online and offline channels in
different countries of the world.

In conclusion, XIAOMI phones are produced through a well-planned and organized process
that involves various stages such as designing and R&D, raw material procurement,
production, quality control, and distribution. This process ensures that XIAOMI phones are
of high quality, and they meet the standards of XIAOMI’s customers.

7
 XIAOMI 12 PRO XIAOMI REDMI 9 XIAOMI POCO M3 PRO
5G

STEP 1: SELECTION OF COMPONENT MANUFACTURERS

The first step in the selection process is identifying the type of components needed for the
smartphone. XIAOMI’s smartphones are known for their high-quality hardware components,
including displays, processors, memory, camera lens, batteries, and software components
needed for a smartphone, the brand begins to look for the right manufacturer.

The second step is to research various component manufacturers. XIAOMI has a highly
skilled research and development team that is constantly on the lookout for the latest
technology and components available in the market. The research team analyses and
evaluates various component manufacturers, based on factors like quality assurance, cost-
effectiveness, and vendor stability.

The third step is to evaluate the manufacturer’s production capacity and supply chain
management system. The right component manufacturer should have an efficient and reliable
production process. They should have a robust supply chain network, ensuring a consistent
and timely supply of components. XIAOMI verifies the manufacturer’s capacity by visiting
their manufacturing facilities, reviewing their quality assurance processes, and analyzing their
stock management systems.

The fourth step is to negotiate with the component manufacturers. XIAOMI has strong
bargaining power due to their bulk purchasing orders. The company uses this to their
advantage to negotiate deals that will benefit them and their consumers. XIAOMI ensures
that they are getting the best possible price for the components while still maintaining high-
quality standards.

8
The final step involves continuous assessment and evaluation of the selected component
manufacturers. XIAOMI has a dynamic relationship with its suppliers, and the company
conducts regular site visits to its manufacturing facilities to assess their performance.
XIAOMI also encourages feedback from their customers regarding smartphone components’
quality and issues and uses this feedback to improve their selection process continually.

In conclusion, XIAOMI follows an in-depth and thorough process for selecting component
manufacturers for their smartphones. XIAOMI’s commitment to providing high-quality
smartphones at an affordable price has been possible due to its careful selection of the right
component manufacturers. Their selection process involves research, evaluation, verification,
negotiation, and continuous assessment of their suppliers regularly. XIAOMI’s efforts and
attention to its supply chain demonstrate why the brand continues to be a successful player in
the smartphone market globally.

STEP 2: SELECTING MATERIALS

The selection of materials for XIAOMI smartphones plays a vital role in determining the
quality of the phone. XIAOMI is a leading smartphone company known for providing high-
quality phones at affordable price. The brand has been quick to adapt to the fast-changing
technology landscape and customer demands. One of the factors that have contributed to the
success of XIAOMI smartphones is their choice of materials.

One of the materials used by XIAOMI in the manufacture of their smartphones is metal.
Metal has several advantages, such as durability, strength, and a premium feel. XIAOMI uses
materials such as aluminium and stainless steel to give their phones a premium look and feel.
The use of metal in phones also helps to dissipate heat better, allowing for more efficient
performance.

The second material used by XIAOMI is glass. Glass is commonly used in the back panel of
smartphones to enable wireless charging. XIAOMI uses Gorilla Glass, a durable and scratch-
resistant glass that offers an excellent level of protection against drops and scratches. The use
of glass also enhances the aesthetic appeal of the phone and gives a premium look.

Plastic is also another material used by XIAOMI in the manufacturing of their smartphones.
XIAOMI uses polycarbonate, a high-quality plastic that offers durability and resistance to
scratches and falls. The use of polycarbonate also contributes to a lightweight phone, making
it easy to carry around.
9
XIAOMI also uses ceramic in some high-end models. Ceramics is a premium material that
offers superior durability, strength, and scratch resistance. It also provides a glossy finish that
adds to the phone’s aesthetic appeal. The use of ceramic is also an essential component in
wireless charging, as it ensures the charging pad does not overheat.

In summary, the selection of materials for XIAOMI smartphones is guided by the need to
offer customers a premium look and feel while ensuring the phone is durable, resistant to
scratches and falls, lightweight and efficient is dissipating heat. XIAOMI has been successful
in using various materials such as metal, glass, plastic, and ceramic to create phones that meet
these criteria while remaining affordable. As XIAOMI continues to innovate in the
smartphone industry, we can expect to see more exciting materials used in the manufacture of
their smartphones.

XIAOMI Gorilla Glass for Polycarbonate plastic Polycarbonate chemical

Metal Xiaomi is used for Xiaomi structure:
Body smartphones phones HO-(C6H6)-C(CH3)2-
(C6H6)-OH

STEP 3: MACHINING ACTIVITIES

In order to build XIAOMI smartphones, the company engages in several machining activities
that involve the use of advanced manufacturing technologies and equipment,

The first machining activity is casting. Casting is one of the most critical machining activites
in building XIAOMI smartphones. It involves the use of molten material, typically aluminum
or steel, poured into a mould to form a particular shape. In the case of XIAOMI smartphones,
casting is used to make the phone’s housing, which is made of aluminium or plastic. The
manufacturing process begins by creating a 3D model of the housing design. The model is
then used to create a mould, which is made of steel. The mould is then assembled and
prepared for casting. Once the mould is ready, the molten aluminium or plastic is poured into
the mould. The molten material is allowed to cool and solidify, which takes about a few

10
minutes. Once the materials are cooled, the mould is opened, and the housing is removed.
The housing is then sent for further machining, such as milling, drilling, and grinding.

Secondly, milling is a machining process that involves the use of a cutting tool to remove
material from a workpiece. In the case of building XIAOMI smartphones, milling is used to
create various features on the housing, such as slots, holes, and edges. The milling process
starts by securing the house in a milling machine. The machine is then set up with the
appropriate cutting tool and programming parameters. The machine is then activated, and the
cutting tool moves along the housing’s surface, removing material as it goes. The milling
process can take several hours, depending on the complexity of the design. Once the milling
is complete, the housing is sent for further machining or assembly.

Thirdly, drilling is another essential machining activity involved in building XIAOMI

smartphones. It involves creating holes in the housing to allow for the installation of buttons,
microphones, and other components. The drilling process is similar to milling, but instead of
removing material from the surface, it creates a hole. The drilling process starts by securing
the housing in a drilling machine. The machine is then set up with the appropriate drill bit and
programming parameters. The machine is then activated, and the drill bit moves into the
housing, creating the hole. The drilling process can take several minutes, depending on the
hole’s size and complexity.

The final activity is grinding where a machining process that involves smoothing and shaping
the surface of the housing. It is typically used to create a smooth finish on the housing, which
is important for aesthetic purposes. The grinding process starts by securing the housing of a
grinding machine. The machine is then set up with the appropriate grinding wheel and
programming parameters. The machine is then activated, and the grinding wheel moves along
the housing’s surface, removing any rough edges or burrs. The grinding process can take
several hours, depending on the complexity of the design. Once the grinding is complete, the
housing is sent for further machining or assembly.

In conclusion, building the XIAOMI smartphone involves several machining activities that
include casting, milling, drilling, and grinding. These processes are critical to the
manufacturing of XIAOMI smartphones, as they help to ensure the accuracy, quality, and
precision of the final product. By using advanced manufacturing technologies and equipment,
XIAOMI can produce smartphones that are not only functional but also aesthetically

11
pleasing. Overall, XIAOMI’s commitment to quality and innovation has enabled it to become
a global leader in the smartphone industry.

Diagram 1

Diagram 2

Diagram 3

Diagram 1, Diagram 2, and Diagram 3 shows the machining process to build Xiaomi
smartphones

12
STEP 4: POLISHING
After the XIAOMI smartphones are finished with the machining activities, the device
undergoes a polishing procedure that is aimed at enhancing its appearance.

The first step of the polishing procedure is sandblasting where the back cover of the XIAOMI
device is sandblasted to remove rough edges or sharp corners left over after the machining
process. The sandblasting is done using a high-pressure air stream that blasts abrasive
particles onto the surface of the device, which removes any imperfections.

After the sandblasting process, the device is polished to give it a smooth and glossy finish.
The XIAOMI smartphones are polished using a diamond paste, which is applied on a
polishing wheel. The back cover of the device is then rubbed against the wheel until the
desired finish is achieved.

The device is then cleaned to remove any diamond paste residue that might be left on the
surface of the back cover. This is done using a mixture of water and alcohol, which is applied
to the device using a microfiber cloth. This process ensures that the back cover of the device
is shiny and free from any smudges or stains.

After the polishing process, the device is checked to ensure that it meets the required quality
standards. This includes a visual inspection to check for any surface imperfections such as
scratches, scuff marks, or dents. Any defects found are corrected before the device is
packaged for shipping to the customer.

In conclusion, the polishing procedure is an essential part of the manufacturing process of

XIAOMI smartphones. It not only enhances the look of the device but also ensures that it
meets the desired quality standards. The process involves sandblasting, polishing, cleaning,
and a thorough quality check to ensure that the device is free from any defects.

STEP 5: PRODUCT TESTING

XIAOMI will begin testing the phone after it has been refined. XIAOMI has made some
product testing videos available. According to the video, there are three sorts of product
testing for their cellphones. First, there's the drop test. The drop test is used to determine the
strength and material qualities of a product. For example, if they tested ten phones and two
were shattered, they would fail, although the drop test criteria is not quantitative but
descriptive. They must assess the degree of wear.

13
The second test is the tumbling barrel test. The tumbling barrel test, on the other hand, is used
to determine the survivability of cellphones in rando free fall conditions to imitate the
consumers' normal usage, and they will test it till they uncover any weak portions of it. As a
result, the outcome will benefit our product development team.

Third, there is the steel ball drop test. The goal of the steel ball drop test is to examine the
sensitivity of components to ensure frontal and direct impact. So, for this exam, the ball is
dropped on a certain region. For example, to put the display, camera lens, and so on to the
test.

Finally, they have battery testing. All batteries will be checked and subjected to a rigorous
testing procedure to ensure that they meet security standards. They have a super box that
provides severe temperatures ranging from -40° to 85°. A second round of battery testing is
also performed. They test the battery's durability and performance through extreme physical
loads, such as crushing and short circuit testing, in addition to extreme temperatures. All
battery tests, including performance and durability, necessitate many rounds of testing. While
balancing the optimal charging speed, safety must be ensured. Because the Mi 11 Ultra
features 67W wired and wireless charging, they cited charging speeds. The battery is
subjected to increased current when charging and draining. They set the highest requirements
and rigorously test these devices to assure their security during the examinations.

Drop test Tumbling barrel test Steel ball drop test

Extreme
Short circuit test
temperature test

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STEP 6: ASSEMBLING
The assembling process of Xiaomi smartphones typically begins after the product testing
phase. This is where the product design, packaging, and performance are thoroughly
examined to ensure that the product meets the required specifications and standards. Once the
product passes the testing phase, the assembling process begins.

The first step in the assembling process involves the selection and ordering of components
required to assemble the smartphone. These components include the display, battery,
motherboard, camera modules, and other essential parts that make up the phone. Xiaomi
sources these components from reliable suppliers to ensure quality and consistency.

The next step involves the production of the Printed Circuit Boards (PCBs) for the
smartphone. The PCB is the backbone of the phone, and it connects all the internal
components together. Xiaomi usually outsources PCB fabrication to third-party
manufacturers to ensure that they get high-quality PCBs that meet their specifications.

Once the PCBs are ready, the components are assembled using automated assembly lines.
The phone assembly process involves attaching the display, camera modules, motherboard,
battery, and other essential parts. The assembly line is an essential part of the process, as it
speeds up production while ensuring consistency and quality.

After assembling the phone, it undergoes a stringent quality control process. The phone is
checked for defects, such as screen defects, battery performance, and other hardware issues
that may affect the phone's durability and functionality. This process is crucial to ensure that
the phone meets the required specifications and standards.

Once the phone passes the quality control process, it is tested to ensure that it performs as
expected. The phone undergoes various tests, such as battery durability tests, camera testing,
and other performance tests. After testing, the phone is packaged and shipped to distributors
or stores.

In conclusion, assembling Xiaomi smartphones is an intricate process that involves many

steps. From component selection to PCB fabrication, assembly, quality control, and testing,
Xiaomi follows a rigorous process to ensure that their smartphones are of high quality and
meet the required specifications. The process involves automated assembly lines and strict
quality control measures to guarantee consistency and quality in their products.

15
 Assembly Process

Printed Circuit Board (PCB)

16
STEP 7: DELIVERY
Assembling a smartphone is a complex process that requires several skills, resources, and
technology to create. After the completion of the assembly of the Xiaomi phone, there are
several stages it must go through before it can be delivered to its customers worldwide.

The first step after assembly is the initial quality control (QC) test. The assembled phone
undergoes several tests to ensure that it meets the pre-defined standards for performance,
stability, and durability. The QC test can take a few hours to several days, depending on the
quantity of phones being tested. This step is crucial for ensuring customer satisfaction as well
as upholding the reputation of the Xiaomi brand.

After passing through QC, the phone undergoes a packaging process. The packaging is
specialized, and each box is designed to provide maximum protection for the phone during
transportation. The packaging includes different materials such as the phone box, instruction
manuals, charging cables, charging adaptors, and earphones. Xiaomi ensures that the
packaging is aesthetically pleasing, the right size, and secure enough to ensure a safe transit.

The next step is to transport the phone from China to different destinations worldwide. The
transportation process is handled by a logistics company specializing in international
shipping. Xiaomi partners with different shipping companies that have the capacity to handle
large volumes of goods and can deliver across borders. The phones are then shipped by air,
sea, or land, depending on the destination and client requirements.

On arrival at the destination port, the consignment goes through customs clearance. Customs
clearance involves various checks to ascertain whether the goods meet the regulatory
requirements of the importing country. The checks include verifying product classification,
applying the relevant tariffs, checking for banned products, and ensuring the product
complies with specified regulations. The process usually takes up to several days, during
which Xiaomi's products are inspected.

Finally, after clearance, the phone is transported to its destination. The delivery of the phone
can be made through various channels, depending on the preference of the client. Xiaomi
partners with several delivery companies across the world to ensure the timely and efficient
delivery of their products. The delivery companies can specialize in door-to-door delivery,
pick-up, or courier services.

In conclusion, the Xiaomi assembly process is only the beginning of a lengthy process before
it can reach its final customers. The quality control, packaging, transportation, customs
17
clearance, and final delivery process are fundamental to ensure that the phone reaches its
destination timely, efficiently, and in excellent condition. Xiaomi's ability to partner with
reputable logistics companies that ensure speedy delivery and efficient customs clearance is a
testament to their commitment to customer satisfaction and their growing brand reputation.

XIAOMI PHONE VS. IPHONE

The XIAOMI 12 Pro and the iPhone 13 are both high-end smartphones with top-of-the-line
features.

Basis XIAOMI 12 Pro iPhone 13

Design A curved glass back with a A flat-edge design with a
metal frame. Ceramic Shield front cover.
Display A 6.81-inch AMOLED A 6.1-inch OLED display
display with a resolution of with a resolution of 2532 x
3200 x 1440 pixels and a 1770 pixels and a 60Hz
120Hz refresh rate. refresh rate.
Camera A quad camera setup with a A dual-camera setup with a
108MP primary sensor, a 12MP wide and ultra-wide
50MP ultra-wide sensor, a lens.
12MP portrait sensor, and an
8MP periscope telephoto
lens.
Performance Qualcomm Snapdragon 8 An Apple A15 Bionic
Gen 1 chipset with up to chipset with up to 6GB of
16GB of RAM. RAM.
Storage Offers up to 512GB of Offers up to 512GB of
internal storage with no internal storage and no
expandable storage option. expandable storage.
Battery Life A 5,000mAh battery with A smaller 3,227mAh battery
120W fast charging. with 20W fast charging.
Has a larger battery capacity Has a more efficient chipset
and faster charging speeds. that can make up for the
smaller battery size.

18
 Price RM 3899 RM 4699
Offers more value for Has better brand recognition
money with its high-end and resale value.
features and lower price.
Table 1: Comparison between XIAOMI 12 Pro and iPhone 13

Overall, both phones have advantages and disadvantages, and the decision between them is
based on personal preferences and priorities. The XIAOMI 12 Pro is more affordable and
boasts a more adaptable camera arrangement, however, the iPhone 13 has better image
processing and a faster CPU.

Xiaomi 12 Iphone 13
Pro

Global Smartphone Shipments Market Share (%)

Brands Q1 (2021) Q2 (2021) Q3 (2021) Q4 (2021) Q1 (2022) Q2 (2022) Q3 (2022) Q4 (2022)
Apple 17% 15% 14% 22% 18% 16% 16% 23%
Samsung 22% 18% 20% 19% 23% 21% 21% 19%
Xiaomi 14% 16% 13% 12% 12% 13% 13% 11%
Oppo 11% 10% 11% 9% 9% 10% 10% 10%
Vivo 10% 10% 10% 8% 8% 9% 9% 8%
Others 26% 31% 32% 30% 30% 31% 31% 29%

19
 Global Smartphone Shipments
Market Share (%)
120
100
80
60
40
20
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(2021) (2021) (2021) (2021) (2022) (2022) (2022) (2022)

Apple Samsung Xiaomi Oppo Vivo Others

Global Smartphone Shipments (in millions)

Brands Q1 (2021) Q2 (2021) Q3 (2021) Q4 (2021) Q1 (2022) Q2 (2022) Q3 (2022) Q4 (2022)
Apple 59.5 48.9 48.0 81.5 59.0 46.5 49.2 70.0
Samsung 76.6 57.6 69.3 69.0 74.5 62.5 64.3 58.3
Xiaomi 48.5 52.5 44.4 45.0 39.0 39.5 40.5 33.2
Oppo 38.0 33.6 38.1 33.9 30.9 28.2 29.5 29.6
Vivo 35.5 32.5 33.7 29.3 24.8 25.5 26.00 23.4
Others 96.8 98.0 108.5 112.7 98.1 92.3 92.4 89.4
Total market 354.9 323.1 342 371.4 326.4 294.5 301.9 303.9

Global Smartphone Shipments (in

millions)
400
350
300
250
200
150
100
50
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(2021) (2021) (2021) (2021) (2022) (2022) (2022) (2022)

Apple Samsung Xiaomi Oppo Vivo

Others Total market Apple Samsung Xiaomi
Oppo Vivo Others Total market

20
PRODUCTION OF XIAOMI VACUUM ROBOT
XIAOMI is a Chinese multinational company that designs, develops, and produces electronic
and technological products such as smartphones, laptops, smart bands, power banks and other
consumer electronics. One of the most popular products produced by XIAOMI is the
XIAOMI vacuum robot. The vacuum robot is a robotic vacuum cleaner that uses modern
technology to clean homes, offices, and other spaces. The production process of the XIAOMI
vacuum robot involves several stages, including designing, prototyping, testing, production,
and marketing.
The first stage of the production process of the XIAOMI vacuum robot is designing. The
designing team at XIAOMI usually conducts extensive research to identify the most common
needs and challenges that people face when cleaning their homes. After identifying the needs
and challenges, the team then creates a design that aims to address the identified problems.
The design is usually consistent with XIAOMI’s brand values, which include simplicity,
quality, and affordability.
Once a design has been created, the prototyping stage, the production phase begins. The
production phase involves the mass production of vacuum robots based on the functional
prototype. During the production phase, each robot is assembled, tested, and quality checked
in the factory. The components of the vacuum robots are manufactured in different countries,
where the company has established partnerships with trusted suppliers. The assembly of
vacuum robots is carried out in XIAOMI’s factories in China.
After the robots have been manufactured and assembled, they are subjected to rigorous
testing to ensure they meet the company’s high standards. This includes testing the sensors,
motors, battery life, suction power, navigation precision, and so on. Any defective units are
revised, and the faulty parts are replaced, ensuring that only functional and reliable vacuum
robots enter the market.
Finally, the marketing stage of the production process begins. In this stage, XIAOMI
promotes the vacuum robots via various marketing channels such as digital advertisements,
social media, billboards, and television commercials. It aims to grow awareness of the
product, increase sales, and generate customer loyalty. XIAOMI’s marketing strategy
emphasizes the affordability, simplicity, and convenience of the vacuum robot, which has
made it a popular choice in many households.
In conclusion, the production process of the XIAOMI vacuum robot is a thorough and
extensive process that involves designing, prototyping, testing production, and marketing.
The company’s emphasis on simplicity, quality, and affordability has undoubtedly made the
XIAOMI vacuum robot a reliable and popular choice among consumers. XIAOMI continues
to innovate and introduce new models, meeting the ever-changing needs of its customers.

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STEP 1: SELECTION OF COMPONENT MANUFACTURERS
The XIAOMI vacuum robot has become one of the most popular robotic vacuum cleaners in
the market today. It is known for its innovative features and high-quality performance.
Several manufacturers have helped XIAOMI in the manufacturing of these vacuum robots.

The first manufacturer is Nidec. Nidec is one of the leading motor manufacturers in the world
and is known for its high-performance motors. Most of the XIAOMI vacuum robots use
Nidec’s brushless DC motors, which are known for their long life, low energy consumption,
and high efficiency.

Secondly, STMicroelectronics is an Italian semiconductor manufacturer that supplies various

components for the XIAOMI vacuum robot, including the microcontroller, accelerometer,
gyroscope, and magnetometer. These components are critical for the robot’s navigation
system, as they help the robot to sense its surroundings and navigate around obstacles.

Thirdly, Omron is a Japanese electronic component manufacturer that specializes in sensors.

XIAOMI vacuum robots use Omron’s various sensors to detect obstacles, edges, and drops.
Omron’s high-quality sensors help the robot navigate around obstacles accurately and avoid
falls, which ensures its safety and efficiency.

Next, Panasonic is a Japanese electronics manufacturer that produces high-quality lithium-ion

batteries. Xiaomi vacuum robot uses Panasonic batteries, which are known for their long-life,
high-energy density, and low self-discharge rate. These batteries provide the robot with long-
lasting power for extended cleaning time.

Besides that, Qualcomm supplies the Wi-Fi module and the Bluetooth module for the Xiaomi
vacuum robot. These modules enable the robot to communicate with the user's smartphone
and receive cleaning instructions remotely. They also allow for firmware updates and
troubleshooting.

In conclusion, the Xiaomi vacuum robot has been a successful product that has been made
possible through the collaboration of several high-quality component manufacturers. These
manufacturers provide various components, including motors, sensors, microcontrollers, and
batteries, that are essential for the robot's navigation, cleaning, and safety. The use of high-
quality components has enabled the Xiaomi vacuum robot to stand out among its competitors,
providing customers with a reliable, efficient, and smart cleaning system.

22
 Nidec Motors Microcontroller Accelerometer Gyroscope

WiFi + Bluetooth
Magnetometer Omron sensor module

STEP 2: SELECTING MATERIALS

When it comes to selecting materials for Xiaomi vacuum robot, several factors should be
considered, including strength, durability, rigidity, weight, and cost. The materials chosen
must be able to withstand the wear and tear associated with daily cleaning operations, be
strong enough to resist impact and avoid damage during movement and be lightweight
enough to allow the robot to move around with ease.

One of the main materials that are commonly used in the manufacturing of robotic devices is
plastic. Plastics are lightweight, cost-effective, and malleable, making them an ideal option
for the body of Xiaomi vacuum robot. The plastic material used in the manufacturing of
Xiaomi vacuum robot should be durable, able to resist wear and tear, and must have a high
strength to weight ratio. Polypropylene and polycarbonate are some of the most popular
plastic materials used in the construction of robotic devices. Polypropylene is lightweight, has
excellent impact resistance, and can be easily molded into different shapes, while
polycarbonate is durable, heat resistant, and has a high impact strength, making it ideal for
robot bodies.

Another material that could be utilized in the manufacturing of Xiaomi vacuum robot is
metal. Metals have excellent strength, durability, and rigidity. The most suitable metal for this
application is aluminum, which is lightweight, corrosion-resistant, and can be easily molded

23
into different shapes and sizes. Aluminum is an excellent choice for the Xiaomi vacuum robot
as it can reduce the weight of the robot, increase its maneuverability, and prolong its lifespan.

Rubber is another material that could be used in the manufacturing of Xiaomi vacuum robot.
It can be used to make the tires and the brushes of the robot. Rubber has excellent frictional
properties, which can help the robot to maintain grip on the floor while moving around. It is
also flexible and can easily conform to different surfaces, making it an ideal material for the
robot tires. Furthermore, rubber is a great option for the brushes as it can clean even the
smallest particles from the surface.

In conclusion, selecting materials for Xiaomi vacuum robot requires careful consideration of
several factors such as strength, durability, rigidity, weight, and cost. Plastic, metal, and
rubber are some of the materials that can be used in the manufacturing of the robot. By
carefully selecting the materials used in the construction of the robot, Xiaomi can create a
product that is strong, durable, efficient, and cost-effective.

Polypropylene plastic Aluminium metal

STEP 3: MACHINING ACTIVITIES

The Xiaomi vacuum robot is a smart, versatile, and efficient cleaning solution that performs
various tasks with precision and accuracy. The robot is designed to handle a range of cleaning
activities, including sweeping, mopping, and vacuuming, among others. The robot employs
advanced technologies to navigate through homes and clean different surfaces with minimal
effort.

One of the primary machining activities of the Xiaomi vacuum robot is suctioning. The robot
has a powerful suction motor, which enables it to pick up dirt, dust, and debris from different
surfaces. The motor creates a vacuum effect that pulls in the dirt, which is then collected in
the dustbin. The robot is programmed to adjust its suction power according to the surface it's
cleaning to ensure efficient and thorough cleaning.

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Another machining activity of the Xiaomi vacuum robot is sweeping. The robot has a pair of
side brushes that sweep dirt towards the suction port. The brushes are positioned at an angle,
which allows them to reach into corners and along edges, where dirt tends to accumulate. The
brushes work in conjunction with the suction motor to ensure that no dirt is left uncollected.

Mopping is yet another machining activity of the Xiaomi vacuum robot. The robot has a
water tank and a mopping cloth, which it uses to mop hard floors such as tiles and hardwood.
The robot sprays water onto the cloth, which is then dragged across the floor to pick up any
remaining dirt and debris. The robot ensures that the cloth is always damp, preventing streaks
and uneven mopping.

The robot also comes equipped with obstacle detection technologies, which enable it to
navigate around obstacles and avoid collisions. The robot uses its sensors to detect walls,
furniture, stairs, and other obstacles, which it then navigates around or stops altogether. The
robot also has mapping and navigation technologies, which enable it to create a map of the
room it's cleaning and use it to optimize its cleaning path.

In conclusion, the Xiaomi vacuum robot is an impressive cleaning solution that employs
advanced technologies to deliver efficient and effective cleaning. Its capabilities range from
sweeping, vacuuming, and mopping to obstacle detection and mapping, among others. These
machining activities not only ensure the robot performs its tasks with precision but also make
it one of the most versatile and efficient cleaning solutions available in the market today.

Xiaomi Vacuum Robot

25
STEP 4: POLISHING
The Xiaomi vacuum robot is a state-of-the-art cleaning device that operates through
sophisticated machinery. The robot is comprised of various components that need to be
polished and cleaned after machining activities have been performed.

The first step in polishing the Xiaomi vacuum robot is to disassemble all of its components.
This ensures that each component is polished accurately, and no areas are left unpolished.
Disassembling the robot can be a tricky process as it requires technical knowledge.

After disassembling the components, the next step is to clean them. This is important because
any kind of debris or dirt on any part may harm the vacuum robot's functionality. A cleaning
agent must be used to clean the components thoroughly. Cleaning the components is not the
final step, but it’s important to ensure that each component is clean before the actual
polishing process.

Abrasive polishing is the next step in restoring the surface of each component after
machining activities. This is a manual process that requires a bit of effort and patience on the
part of the polisher. A coarse abrasive is used in the initial phase of polishing to get rid of any
scratches or rough patches on the surface of the components. This is similar to sanding a
piece of wood. When using abrasive polishing, it's important to be gentle with the
components to avoid causing any damage to the surfaces.

Liquid polishing is the next step after abrasive polishing. In this process, a fine polishing
compound is used to further smoothen the surface of each component. This process produces
a mirror-like finish on the surface of the components. Liquid polishing is used to bring the
components to their original shine and produce a clean and glossy surface.

After completing the liquid polishing process, the components are ready to be reassembled.
Care should be taken to ensure that all components fit comfortably and securely in place.
Finally, the Xiaomi vacuum robot is tested to ensure its functionality.

In conclusion, the Xiaomi vacuum robot requires careful polishing to keep it in good working
condition. The polishing process includes disassembling the components, cleaning and
manually polishing the surface with a coarse abrasive, using a liquid polishing compound for
fine polishing, and ultimately, reassembling the components and testing the robot’s
functionality. These steps ensure that the vacuum robot is restored to its original shine and
functionality after machining activities.

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STEP 5: PRODUCT TESTING
After polishing a Xiaomi vacuum robot, product testing is essential to ensure the robot's
overall ability to carry out its core function of cleaning.

Firstly, cleaning efficiency. The cleaning efficiency of the Xiaomi vacuum robot must be put
to the test by employing different types of cleaning surfaces, such as carpets, tiles, and
hardwood floors. The robot's suction power and sweep settings must also be tested to ensure
the robot's ability to clean thoroughly.

Secondly, navigation and mapping. The robot must be tested rigorously to ascertain its ability
to navigate its environment accurately. This test would involve simulating real-life scenarios
where the robot must navigate around obstacles and map out the area for detailed cleaning.

Thirdly, battery life. To test the Xiaomi vacuum robot's battery life, it must be put through
several cleaning cycles, and the length of time the robot spends cleaning before it needs
recharging must be recorded.

Next, the conversation algorithm. Part of the product testing stage must involve testing the
robot's ability to converse with its owner through a mobile application. The application will
be used to monitor the robot's progress, provide feedback, and instruct the robot on which
areas need to be cleaned most.

Besides that, obstacle detection. The robot's ability to detect and avoid obstacles must be
tested thoroughly in several different environments.

On the other hand, noise level. Noise level testing is essential to test the Xiaomi vacuum
robot's level of silence while functioning. Modern users prefer robots that operate silently and
cause little disturbance.

Lastly, special features. Xiaomi vacuum robots come with their unique features such as a
floor mopping function. It is crucial to test these features to ensure they work optimally.

In conclusion, the testing process is essential to ensure that consumers get a reliable and high-
quality product that meets their expectations. The success of a Xiaomi vacuum robot depends
on the meticulousness of the testing process. By conducting the tests listed above, Xiaomi can
be sure that its vacuum robot is fit for purpose and ready to hit the market.

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STEP 6: ASSEMBLING
The assembly process of a Xiaomi vacuum robot typically begins after the product testing
phase is completed and all necessary adjustments have been made. The assembly process
itself involves several steps.

Firstly, component preparation. The first step in assembling a Xiaomi vacuum robot is to
prepare all the necessary components. This includes the main body of the vacuum, the
charging dock, the dustbin, the brush head, the filters, and any other components that are
included in the device.

Secondly, body assembly. The main body of the vacuum is typically assembled first. This
involves attaching the various components of the body together, including the motor, the
wheels, and the sensors.

Dustbin Assembly: The dustbin, which is where dirt and debris are collected, is typically
assembled next. This involves attaching any necessary filters and making sure the dustbin is
securely attached to the main body of the vacuum.

Thirdly, brush head assembly. The brush head, which is used to clean carpets and other
surfaces, is typically assembled next. This involves attaching the brush head to the main body
of the vacuum and making sure it is securely in place.

Next, testing. Before the vacuum is fully assembled, it is usually tested to make sure it is
functioning properly. This may involve running the vacuum through a series of tests to ensure
that all the sensors, motors, and other components are working correctly.

Lastly is the final assembly. Once the vacuum has been tested and any necessary adjustments
have been made, the final assembly can begin. This involves attaching any remaining
components, such as the charging dock and any additional accessories, and making sure
everything is securely in place.

Quality Control: After the vacuum has been fully assembled, it will typically undergo a final
quality control check to ensure that it meets all the necessary standards for performance,
durability, and safety.

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Overall, the assembly process for a Xiaomi vacuum robot is relatively straightforward, but it
requires careful attention to detail to ensure that all components are properly assembled, and
the device is functioning as intended.

STEP 7: DELIVERY
The delivery of Xiaomi vacuum robot to worldwide customers typically varies depending on
the seller, location of the customers, and the shipping method chosen. Xiaomi vacuum robot
is an innovative cleaning device that has gained popularity worldwide due to its features,
including powerful suction, intelligent mapping, and affordability. Xiaomi being a Chinese
brand has several distribution channels for delivering the vacuum robot to customers in
different parts of the world, primarily through online platforms such as Amazon and eBay. In
this essay, we will discuss in detail the various methods of shipping and distribution that
Xiaomi uses to deliver the vacuum robot to customers worldwide.

The primary method of shipment used by Xiaomi is direct shipping to the customers'
location. Xiaomi has several warehouses and distribution centers globally to facilitate this
and ensure that the product reaches customers promptly. Once the customer places the order,
Xiaomi's system automatically processes and dispatches the order for delivery. The time of
delivery varies depending on the location, with some countries receiving the delivery in as
little as three days.

Another method Xiaomi uses for delivering its vacuum robot to customers worldwide is
through dropshipping. This method is a little different from direct shipping since it involves
Xiaomi partnering with various online retailers to facilitate shipping directly to customers.
Xiaomi partners with online retailers across the world to supply its products, including the
vacuum robot, to customers directly. This partnership helps Xiaomi reach a broader audience
in different locations globally.

Xiaomi also uses third-party logistics providers to help deliver its vacuum robot to customers
worldwide. This method helps Xiaomi reach more customers beyond its official channels of
distribution. The third-party logistics providers include shipping and air freight companies

29
that are reliable and established. These logistics providers handle the shipping process from
the cord Xiaomi distribution centers to the customers' location.

For customers in the United States, Xiaomi has partnered with Amazon to deliver the vacuum
robot. This partnership has enabled Xiaomi to reach a broader market in the United States,
with delivery times ranging from one to two days, depending on the location. The partnership
makes it easy for customers who use Amazon Prime membership to purchase the vacuum
robot, which they can receive within two days.

In conclusion, Xiaomi has several methods of shipping and delivering its vacuum robot to
customers worldwide, including direct shipping, drop shipping, third-party logistics
providers, and partnerships with online retailers such as Amazon. Additionally, the company
has warehouses and distribution centers globally to ensure that customers receive their orders
promptly. This variety of delivery methods ensures that the vacuum robot reaches customers
worldwide quickly and securely. Xiaomi uses these delivery methods to reach more
customers and increase the market for its innovative products, including the vacuum robot.
As a result, it is easy for customers worldwide to purchase and receive the vacuum robot
promptly.

COMPARISON BETWEEN XIAOMI ROBOT VACUUM MOP 2 AND SAMSUNG

POWERBOT ESSENTIAL
Features Xiaomi Mi Robot Vacuum Samsung Powerbot Essential
Mop 2
Navigation System Laser Mapping to create a Visionary Mapping to
detailed map of the home. navigate around the home.
Cleaning Modes Vacuum and Mop Vacuum only
Suction Power (Pa) 2100 20
Battery Capacity (mAh) 3200 3300
Run Time (min) Up to 150 Up to 60
Dustbin Capacity (ml) 550 700
Water Tank Capacity (ml) 250 Not applicable

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 Filter Type HEPA filter that captures Standard filter
small particles.
Voice Control Yes (Alexa, Google Yes (Alexa, Google
Assistant) Assistant)
Mobile App Control Yes (Mi Home) Yes (Samsung Smart Home)
Obstacle Detection and Yes Yes
Avoidance
Carpet Detection and Boost Yes Yes
Auto Recharge and Resume Yes Yes
Cleaning
Price RM 1299.00 RM 1399.00
Overall, both vacuum robots have advantages and disadvantages, and the decision between
them is based on personal preferences and priorities. The XIAOMI Mi Robot Vacuum Mop 2
is more affordable compared to Samsung Powerbot Essential.

Xiaomi Mi Robot Vacuum Mop 2

Samsung Powerbot Essential

Characteristics 2020 2019 2018

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 iRobot 46% 52% 52%
Ecovacs 17% 14% 14%
Mi 4% 4% 5%
Roborock 9% 8% 4%
Shark 5% 3% 3%

Robot Vacuum Market Share

Worldwide from 2018-2020
Shark

Roborock

Mi

Ecovacs

iRobot

0% 10% 20% 30% 40% 50% 60%

2018 2019 2020

The graph above shows the robot vacuum market share worldwide from 2018-2020.

32
COST CLASSIFICATION FOR XIAOMI SMARTPHONES
Direct Cost

Direct Materials - Aluminium

- Stainless Steel
- Glass
- Plastic
- Polycarbonate
- Ceramic
- Screen
- Silicon
- Display components (AMOLED)
- Image signal processor
- Lithium cobalt oxide
- Motherboard
- Lithium-ion Batteries
- Camera module
- Fingerprint scanner
- Flash memory and RAM
- Qi wireless charger
- Touchscreen panels

Direct Labour - Salary and wages for employees

- Medicare of labour
- Labour’s employment insurance
- Training costs for production workers

Direct Expenses - Royalties

- Costs of goods sold
- Testing and certification fees
- Packaging costs
- Branding costs
Tooling and equipment costs

33
 Indirect Cost
- Masks, gloves, and hats
- Adhesives
- Grease for machine
- Screws
- Tape
Indirect Materials
- Soldering materials
- Diamond paste
- Microfiber cloth
- Alcohol
Production Related - Water
- Supervisor of factory
- Security guard of factory
- Maintenance workers
Indirect Labour
- Quality assurance workers
- Research and
development (R&D) teams
- Depreciation of machine
Indirect Expenses - Maintenance of machine
- Utility bills
- General and administrative
costs
Non-Production Related
- Advertisement
- Marketing

COST CLASSIFICATION FOR XIAOMI VACUUM ROBOT

Direct Cost
Direct Materials - Plastic
- Polypropylene
- Polycarbonate
- Aluminium
- Rubber
- Brushless motor

34
 - Lithium-ion battery
- Sensors (LiDAR, ultrasonic, cliff, and drop)
- Charging dock
- Power cable and adapter
- Camera
- Wheels
- Dustbin and filter
- Salary and wages for employees
- Medicare of labour
Direct Labour
- Labour’s employment insurance
- Training costs for Production workers
- Royalties
- Quality control and testing
Direct Expenses - Warranty and customer support
- Marketing and advertising
- Packaging materials

Indirect Cost
Production Related - Adhesives and sealants
- Lubricants and oils
- Cleaning agents
- Protective films and
coatings
Indirect Materials
- Safety goggles
- Gloves
- Personal protective
equipment (PPE)
- Cleaning clothes
Indirect Labour - Supervisor of factory
- Security guard of the
factory
- Maintenance workers
- Quality assurance workers

35

Indirect Expenses
Non-Production Related
- Assembly workers
- Testing and inspection
personnel
- Material handlers
- Depreciation of machine
- Maintenance of machine
- Utility bills
- Production-related tooling
and fixtures
- Quality control and testing
costs
- General and administrative
costs
- Advertisement
- Marketing
- Office supplies
- Insurance
- Training and development
36