Samsung is making a 55% profit on each Samsung Galaxy Note 20 Ultra 5G unit, as reported by Counterpoint Research.
According to research, it costs just under $550 to make each Galaxy Note 20 Ultra 5G device. This doesn’t include other costs like research and marketing.
“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.”
The 5G is expensive. The Snapdragon 865+ chipset, X55 modem, and various RF components are costing Samsung roughly $154, as reported.
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Samsung has delivered excellent performance in designing, manufacturing, and combining multiple technologies and components in a thin and light design. Samsung Galaxy Note 20 Ultra 5G was launched in two variants, Qualcomm Snapdragon 865+ for the USA, China, South Korea whereas the Exynos 990-based variant for the other countries.
The mmWave version of Note 20 Ultra 5G builds on Qualcomm’s reference design featuring the most advanced 5G SoC, the Snapdragon 865+, and the Snapdragon X55 5G Modem-RF System. The mmWave variant costs approximately 10% more than the sub-6 GHz variant.
The Note 20 Ultra features one of the most advanced camera sensors in the three-sensor module. Galaxy Note 20 Ultra 5G features a lower resolution telephoto lens in comparison to the Galaxy S20 Ultra 5G.
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Research Director of Counterpoint research, Tom Kang, commented, “Samsung, with its multiple SKU strategy, has a varied level of dependence on vertically integrated internal suppliers and external suppliers. This requires sophisticated system integration. The mmWave Qualcomm variant of the Galaxy Note 20 Ultra 5G, Samsung contributes to roughly half of the costs of the total components, whereas, for the Exynos variant, Samsung’s share goes up to almost 70%. It is impressive to see Qualcomm’s share in a Samsung flagship exceed 40%, as it offers a fully-optimized system-level solution from SoC to the modem, RF, and antenna system. Other important component design wins include NXP which combines UWB, Secure Element, NFC, and eSIM in a single solution. Other notable contributors include Qorvo, Largan Precision, Corning, and others.”