Credit: Eric Zeman / Android Authority
- Samsung’s Galaxy S21 Ultra reportedly costs an estimated $533 to produce.
- The 256GB Galaxy S21 is believed to cost $414 to make.
- Both figures represent a decline over estimates for last year’s S20 series.
Samsung’s Galaxy S21 series is $200 cheaper across the board compared to last year’s S20 family, and it looks like this approach has paid dividends for the Korean company. But how much do these phones cost to make?
Well, Counterpoint Research (h/t: PhoneArena) has issued an analysis of the phones’ bill of materials (BoM), estimating that a $1,199 128GB Galaxy S21 Ultra (Snapdragon 888, mmWave) costs $533 to produce. The research company added that this BoM is actually 7% cheaper than the S20 Ultra.
The company reports that memory, the switch to a processor with an integrated modem, a reduction in the number of mmWave antenna modules, and omitted box contents (charger, earphones) represent the major areas of cost-savings for Samsung’s Ultra model. But connectivity costs were slightly higher due to the new phone adding support for UWB and the S-Pen.
Of course, it’s worth stressing that a $533 BoM doesn’t mean that Samsung is making $666 for every 128GB S21 Ultra sold. Companies also spend plenty of money on research, marketing, and other costs not included in component costs. It’s also interesting to see the tracking firm’s chart (seen below) showing that the Exynos-powered S21 Ultra is cheaper, presumably due to the lack of mmWave components and the in-house chipset.
The Galaxy S21 and S21 Plus saw further cost savings of roughly 12% and 13% respectively over their predecessors. More specifically, Counterpoint found that a 256GB Galaxy S21 (Exynos 2100) had a BoM cost of ~$414.
The research firm attributed these savings to hardware changes like the removal of a 3D ToF camera (on the Plus model), and a lower display resolution. The Plus variant also ships with less RAM than its predecessor, while both devices ship without a charger or earphones.
We’ve asked Counterpoint for more details regarding BoM estimates for the 128GB Galaxy S21 and will update the article if/when they get back to us. Either way, it seems like Samsung’s decision to cut pricing is helping it shift a ton of Galaxy S21 series phones.
