The Galaxy Note20 Ultra has a production cost of $ 549

Apple has spearheaded a new business strategy, which is making a huge profit on every iPhone sold. And it looks like Samsung is learning this strategy too, to apply to the Galaxy Note20 Ultra.

Counterpoint Research recently announced an analysis of the Galaxy Note20 Ultra’s bill of materials and manufacturing costs. Accordingly, Samsung’s high-end smartphone has a production cost of $ 549. This includes the component price, assembly cost, the accessories in the box, and the S-Pen.

These production costs do not, of course, include costs of marketing, researching and licensing the technology. So, Samsung certainly can’t make $ 750 in profit on every $ 1,300 Galaxy Note20 Ultra. But Samsung still has a pretty large margin.

Counterpoint also pointed out that Qualcomm’s Snapdragon 865+ processor and X55 5G modem chip costs up to $ 154, which is twice as much as before. This report is also consistent with the disclosure from Xiaomi, the pair of Snapdragon 865 and X55 5G chips that cost twice as much as the Snapdragon 855 and the 4G modem chip.

The research firm also claims that the mmWave 5G version of the Galaxy Note20 Ultra is also significantly more expensive than the sub-6GHz 5G version. The previous Galaxy S20 Ultra had a production cost of $ 528.

Though more profits can be made on every Galaxy Note20 Ultra sold. But this smartphone is also quite expensive, up to 1,300 USD. Therefore, we will have to wait and see if actual sales are up to expectations, or consumers will be afraid of this price.

Reference: androidauthority