The manufacturing cost of the Samsung S23 Ultra is less than $500 There is a reason for the significant markup

Samsung S23 Ultra has a manufacturing cost below $500, but it is sold at a higher price due to a significant markup

【PhoneAuto News】Smartphones are expensive, but their manufacturing costs are not cheap either. The Samsung Galaxy S23 Ultra is currently one of the most expensive smartphones that most users can buy. But according to a recent report, the cost of the Galaxy S23 Ultra seems to be less than $500 (about RMB 3,500).

This news comes from Counterpoint Research. The company released a bill of materials (BoM) analysis of the phone, showing its cost to be $469. The retail price of some high-end mid-range phones is not much higher than this. According to the analysis, most of the cost comes from only three components of the phone.

First, about 35% of the cost comes from the SoC, which is about $164 (about RMB 1,160). Samsung partnered with Qualcomm to deliver the Snapdragon 8 Gen 2 mobile platform for the Galaxy. We cannot confirm whether the partnership to manufacture custom Snapdragon chips will increase the price.

Next, about 18% of the cost comes from the device’s display, which is about $84 (about RMB 600). This is not surprising, as Samsung has the most gorgeous displays. The AMOLED panel equipped on the Galaxy S23 Ultra has a resolution of 1440×3088 and a refresh rate of 120Hz.

Finally, about 14% of the cost comes from the camera, which is about $65 (about RMB 460). Similarly, Samsung has invested a lot of time and effort in its camera technology, making it one of the best cameras on the market. This is an expensive component, which is not surprising.

The other two main components of the phone are RAM (11%) and the casing (8%). The remaining 15% is in the “other” category. This category includes other components such as the motherboard, S Pen, ports, sensors, etc. So, if you want to know why the Galaxy S23 Ultra is so expensive, just know that nearly 40% of its cost comes from manufacturing costs.

Furthermore, obviously the company must significantly increase the prices of their phones in order to recover the costs of manufacturing, marketing, research and development, and other expenses.

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