Samsung Galaxy S23 Ultra price vs manufacturing cost: guess the difference

Published On: June 2, 2023

Highlights

The Galaxy S23 Ultra was launched in India for Rs 1,24,999 for a 12GB+256GB storage variant.
As per a new report, the Bill of Materials (BoM) of the Galaxy S23 Ultra is $469 (less than Rs 40,000).
The cost of a smartphone is primarily determined by its key components, including the SoC, display, and camera subsystem.

The Samsung Galaxy S23 Ultra is among the company’s highly anticipated flagship smartphones, launched in India last year at a whopping price of more than a lakh. But have you ever thought about how much it takes for the company to manufacture the phone? As per a new report, it is less than Rs 40,000 (direct conversion). Yes, you read that right. Take a look at it.

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Samsung Galaxy S23 Ultra selling price vs cost price

The Samsung Galaxy S23 Ultra was launched in India for Rs 124,999 for a 12GB+256GB storage variant. However, as per the latest bill of materials (BoM) analysis by Counterpoint Research, producing an 8GB+256GB Galaxy S23 Ultra (Sub-6GHz) variant costs Samsung around $469 (approx. Rs 38,651).

The cost of a smartphone is primarily determined by its key components, namely the System on a Chip (SoC), display, and camera subsystem. The cost of components related to the RF sub-system and memory decreased due to excess inventory and supply.

As per the graphic, Qualcomm’s processing and cellular components account for 35 per cent of the total cost, while Samsung’s display and camera components make up 32 per cent. Memory occupies 11 per cent, while the casing accounts for 8 per cent. The remaining 15 per cent is attributed to “others,” encompassing the vibration motor, waterproofing, and other miscellaneous components.

The report also notes that the mentioned cost does not cover expenses related to assembly, testing, IP&R, software, and other related costs.

Samsung Galaxy S23 Ultra key specifications

Display: 6.8-inch QHD+ Dynamic AMOLED 2X display with a high 120Hz refresh rate
Rear camera: 200MP+10MP+12MP+10MP
Front Camera: 12MP on the front
Chipset: overclocked version of Qualcomm Snapdragon 8 Gen 2 SoC
Battery: 5,000mAh with 45W fast charging support