But if we look at Samsung’s finances, we will see that the situation definitely does not look like Samsung is overpricing its phones and has a 60% margin on them. For the most recent quarter, the phone division reported revenue of 30.74 trillion Korean won, while the division’s operating profit was 3.94 trillion. won. The actual operating (not net) margin of the phone division is thus just under 13% and no more than 60%. While it’s likely that the margin on the Galaxy S23 Ultra is larger than the other phones (not just by size, but by ratio), the hardware for the S23 Ultra may cost that $469, but with all other costs factored in, applying the division’s average margin the cost of it was up to about 1040 USD.
Counterpoint claims that a full 35% of the hardware price (approx. 165 USD) will be taken by the computing part and the modem, i.e. mainly by Qualcomm. Another 18% take the display (approx. USD 85) and 14% the camera system (approx. USD 65). These two parts are handled by Samsung itself. Memory makes up 11% of the price (about 50 USD), packaging and construction 8% (35-40 USD). When it comes to components, Qualcomm makes up the largest part of the phone in terms of price, and Samsung itself is a close second.
#Samsung #Galaxy #S23 #Ultra #cost #manufacturing #costs #retail #price