An analysis of the parts reveals that Samsung is making a huge profit with the Galaxy Note 20 Ultra.
The Samsung Galaxy Note 20 Ultra is one of the most expensive mainstream smartphones available. It will therefore not surprise you that Samsung earns a nice pocket money. But according to CounterpointResearch it is more than pocket money, and the device flips over one and a half times.
Samsung Galaxy Note 20 Ultra winst
How expensive would it be for Samsung to produce a Galaxy Note 20 Ultra and what is the profit? The linked medium looked it up. They list the apparent costs and conclude that the components cost less than $ 470!
That is, a Snapdragon 865+ priced at around $ 60, a $ 90 display, and (the most expensive part) a nearly $ 100 modem. It is therefore striking that the antenna and 5G receiver are the most expensive. Add to that a $ 25 S-Pen, throw in a charger and put the whole thing together. Then you end up with an amount of less than $ 550. That is a Galaxy Note 20 including assembly, tests, the box, the S-Pen and so on. And that for a sale price of well above $ 1000!
So, to stay in dollars, it would cost Samsung roughly $ 550 to make a Galaxy Note 20 Ultra, while they charge $ 1300 for it, which would mean a profit of nearly $ 750.
Consider the overheads
While Samsung is bound to make an ultra profit on the Ultra, that $ 550 isn’t the only cost, of course. Research & Development, licenses, taxes and of course marketing cost Samsung a lot of money. So of that $ 750 gross profit per Galaxy Note 20 Ultra, a lot has to be donated to all kinds of other things.
And don’t forget that there is also a serving of it bribery, tax evasion and lawyers goes!
Also read: Leaked: Samsung Galaxy S21 (Plus) gets a large battery
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