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

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

Similarly, according to a recent report, the cost of manufacturing the iPhone 14 Pro for the tech giant Apple is $464 (approx. Rs 38,400). In comparison, after adjusting for currency inflation, the cost of producing the iPhone 13 Pro was around $447 (approx. Rs 37,000). It should be noted that the iPhone 14 Pro is priced at Rs 1,29,900 in India, and the iPhone 13 Pro launched at Rs 1,19,900.