Samsung sells the Galaxy S20 Ultra at a starting price of $ 1,400, but the production cost of this phone is only $ 528.5, equivalent to about 38% of the proposed price.
Samsung only spent 38% of the production cost compared to the proposed price of the Galaxy S20 Ultra
According to Notebookcheck , the latest report from TechInsights shows that the Galaxy S20 Ultra 5G costs $ 528.5 to produce. This figure refers to the component price (BoM) and does not include marketing costs as well as Research and Development (R&D).
That’s higher than the Galaxy S10 +’s BoM cost of $ 420, while that of the Galaxy S9 + is $ 379.5. It is known that the BoM cost of OnePlus 7 Pro is only 324 USD and Xiaomi’s new Mi 10 is 440 USD.
Data from TechInsights shows that the Galaxy S20 Ultra’s camera array is the most expensive, reaching $ 107.5. The next position goes to the Snapdragon 865 chip, which costs $ 81. 6.9 inch QHD OLED touch screen + 120 Hz refresh rate in third place for $ 67. In Vietnam, the Galaxy S20 Ultra version uses the Exynos 990 chip developed by the company itself, which is likely to be cheaper.
The retail price of the Galaxy S9 + is $ 840 at launch, which means that BoM costs only 45%, while the Galaxy S10 + has a launch price of $ 999, which means BoM costs only 45% of that number. As for the Galaxy S20 Ultra, BoM costs only account for 38%.
Based on the above figures, it can be seen that Samsung’s profit margin has increased dramatically compared to their previous high-end phones.