Counterpoint Research has published a breakdown of the Bill of Materials for the Samsung Galaxy Note20 Ultra 5G, which totals just under $550, component costs make up about $468 of that.
The rest of the money goes to assembly and testing, accessories and everything else that’s needed before the phone can be sold. The retail price is $1,300 (before discounts and trade-ins).
The researchers make an interesting note – the components for the mmWave version of the phone cost about 10% more than those for the sub-6 model. The mmWave version is built on Qualcomm hardware including the S865+ chipset and X55 modem.
With these Snapdragon-powered versions nearly 40% of the money for components go to Qualcomm, Samsung-made components account for 50% of the cost. That number goes up to 70% for the Exynos models (the chipset and the modem are two of the most expensive components).
Counterpoint highlights several design wins, including NXP’s module that combines UWB, Secure Element, NFC and eSIM in a single package. Qorvo, Largan Precision and Corning also get a nod.
“Samsung has done an excellent job in designing, manufacturing and integrating multiple advanced technologies and components in a very thin and light form-factor compared to the previous generation flagship models, and with a competitive BoM cost structure. The total BoM cost achievement is slightly under $550 with the component cost making up around $468, which is a commendable for a device with a list price of $1299,” says Senior Analyst, Ethan Qi.
In order to turn a profit, you need to be at least 2x the BOM. And that's just a modest profit. You have to factor in the additional costs: - R&D - could be big - marketing - distribution - nobody will sell your phone without getting...
you talk like Samsung is making 120% pure profit when in fact they probably dont even make 40% profit on each phone. There are more cost for the phones than just the BoM.