14 DAY TRIAL // Galaxy Note20 is Samsung’s latest and greatest smartphone, and at the same time, it’s also one of the most expensive mobile devices that the company is selling right now.
And according to Counterpoint Research, the Galaxy Note20 could help Samsung make quite a fortune if the device ends up selling in high volumes.
It’s all because of the reduced component cost for the Note20, as the device could generate quite a huge profit for Samsung at the end of the day.
The components used on the Galaxy Note20 cost $468, with the baseband processor currently the most expensive at $97.20. The display used on the new smartphone costs $91.50, while the Qualcomm Snapdragon 865+ chip is believed to have a price of $57.
All of these plus the assembly and testing, charger and cables, the box and the other accessories bring the total bill of materials cost to $548.90, which suggests that Samsung has quite a profit margin for a device that costs $1,299.
R&D costs not included
Worth knowing, however, is that this analysis does not include marketing and R&D costs, but at the end of the day, there’s a chance that Samsung still makes a lot of money per each unit sold.
“Samsung has done an excellent job in designing, manufacturing and integrating multiple advanced technologies and components in a very thin and light form-factor compared to the previous generation flagship models, and with a competitive BoM cost structure. The total BoM cost achievement is slightly under $550 with the component cost making up around $468, which is a commendable for a device with a list price of $1299,” Senior Analyst, Ethan Qi, said.
The bill of materials cost could be a little bit lower in Europe where the Note20 comes with Samsung’s in-house built Exynos chip.