Looking for a premium Android phone? This is why you can plan to spend at least $1,199. A better setup will set you back a staggering $1619 as well. These are the current prices for the Galaxy S23 Ultra, which is regarded as one of the priciest Android smartphones available.
But still, are you informed of Samsung’s manufacturing expenses for the Galaxy S23 Ultra? So, it’s nothing close to $1,000. In actuality, the cost of production is nothing near $500!
The Galaxy S23 Ultra costs $469 to manufacture
in-depth analysis of the Galaxy S23 Ultra’s bill of materials (BoM) was completed by Counterpoint Research. According to the data provided by Counterpoint Research, the bill of materials comes in at a very unimpressive $469. It is 154% less than the beginning model’s retail cost.
Now, $469 BoM is a lot, even if the production cost is far lower. And it may lead you to ask what percentage each Galaxy S23 Ultra component is receiving. According to the bill of materials, processing and cellular account for up to $35 of the overall price. The supplier of both of these parts is Qualcomm.
In comparison, the display and camera account for 32% of the device. The majority of these two parts come from Samsung. The memory accounts for 11% of the entire production cost, whereas the enclosure only accounts for 8%. Moreover, 15% of the cost of manufacturing additional parts for the Galaxy S23 Ultra.
Are you interested in the validity of this information? Counterpoint Research is renowned for investigating the market more thoroughly. In the TMT sector, it is one of the most reputable worldwide technology market research companies. Thus, its in-depth study of the report is often viewed with a grain of salt.
Why is the sale price 154% more expensive?
The Galaxy S23 Ultra’s total cost of materials now amounts to $469. Also, it is $730 less than the retail cost of the phone when you take into account the basic model. You could question where the $730 is going in light of this. Is Samsung putting this much cash in its own pockets?
Actually, no! As was already noted, additional components of the phone are not included in the bill of materials provided by Counterpoint Research. It only lists the prices of the parts that make up the Galaxy S23 Ultra. Software, assembly, testing, IP&R, and other associated expenses are what is left.
While we have specific information, the overall cost of the Galaxy S23 Ultra when these things are taken into account is undoubtedly greater than $469. Nevertheless, selling the product is not generating a 154% profit for Samsung. I’m thinking that it will be far less than 100%.
This Galaxy S23 Ultra bill of materials should convince you that the phone was made inexpensively for that purpose. Instead, think of the data as a glimpse into how much it would cost to prepare the phone’s components and find the necessary resources.
Speaking of which, it’s interesting to see that Samsung pays Qualcomm the greatest proportion of costs. Maybe this is the rationale for certain areas’ desire to switch to the Exynos 2400 for the Galaxy S24 series. Nevertheless, such information has not yet been verified. So, Samsung may continue to spend the most money on Qualcomm purchases for the Galaxy S24 series in the future. If we find out more information on this, we’ll let you know.