Shockingly Good Value for Money!

Cheap. It was truly cheap! This low price might even make some think, Could the manufacturers even earn a profit?

Of course they profited. Even though the two versions of Red Pepper Z1 were selling at "friendly prices," the net profit per unit coming from the hardware was about $50. If sales volume exceeded millions or even tens of millions, the net profit per hardware unit might even reach $100.

In order to support the production of this 100% domestic phone, the essential hardware components were sold to Tiny Pepper Corporation at a highly discounted price. The components included the SX-800 jointly developed by Xing Hai Technologies and Teng Xun Corporation, the LPDDR4 memory chip from Purple Ray, and the internal storage from Da Jiang storage chip factory. They were sold at prices that were only slightly higher than the production costs.