Galaxy Note 20 Ultra: Samsung makes a huge profit on every unit sold

by Jerry

The analytics firm Counterpoint has revealed the cost of the Galaxy Note 20 Ultra components. The total would be $549, less than half the price of the smartphone (42%). This figure does not include certain expenses such as research and development and marketing. But once deducted, the margin should remain substantial. The report contains other interesting details.

The version of the Galaxy Note 20 Ultra used for this estimate is the 128GB storage adisposant version. Considering only the cost of the components, the margin to the selling price ($1299) is 237%. Nothing shocking according to counterpoint analyst Tom Kang. For him, the cost of components relative to the selling price is "reasonable" compared to what other players in the industry do.

Galaxy Note 20 Ultra: Qualcomm components account for 40% of total cost

The most expensive component of the Galaxy Note 20 Ultra is its Snapdragon X55 5G modem and the $92.20 RF antenna. Qualcomm is forcing manufacturers to purchase these components with the Snapdragon 865 chip, which costs $57. The three are therefore inseparable. This is one of the reasons why Google abandoned this SoC on the Pixel 5 in favor of a mid-range version.

Counterpoint Research did not provide a concrete estimate of the manufacturing cost of the Exynos 990 version of the Galaxy Note 20 Ultra. We just know that with this version, about 70% of the components of the smartphone are signed Samsung. The profit margin is expected to be even higher for the European version of the Galaxy Note 20 Ultra. In addition, all Qualcomm components in the S865 version account for 40% of the total cost.

As a reminder, this model is compatible with the 5G's millimeter frequency bands. "The mmWave version of the Note 20 Ultra 5G is based on Qualcomm's reference, its most advanced SoC 5G. It integrates the Snapdragon 865 and the Snapdragon X55 5G Modem-RF system," counterpoint explains. The mmWave variant costs about 10% more than the one that only supports Sub-6 GHz bands.

The Galaxy Note 20 Ultra also features one of the most advanced photo blocks on the market. All sensors cost $60.30.  The battery costs $11.60. Finally, the screen is the second most expensive component after the modem. It costs $91.50. The cost of the components also includes that of external accessories (S Pen, charger and cable, headphones, etc.), but also the loads related to testing and assembly of the product.

Source: Counterpoint

You may also like

Dedicated brain and soul to all those who have video games in their blood, is the Italian reference point for the entertainment of the present and the future. Get ready to be amazed every day with articles, news, videos, live shows and brillant production.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?