S23 Ultra Bill of Material Reveals That It Only Costs $469, 154% Lower Than its Selling Price

Muhammad Zuhair
Muhammad Zuhair
2 Min Read

The Galaxy S23 Ultra’s bill of materials, or BoM, lists its price as merely $469, according to data from Counterpoint Research. When you take into account that the phone’s basic model costs $1,199, this is unquestionably a sizable sum of money. Let’s first have a look at how the expenses are divided up.

Consequently, according to the bill of materials, Qualcomm provides the processor and cellular services that account for up to $35 of the cost, while Samsung principally provides the display and camera that account for up to 32% of the cost. Memory accounts for 11% of the total, the casing for 8%, and “others,” which comprise the vibration motor, waterproofing, PCB, MLCC, and other miscellaneous elements, account for 15% of the total.

The stats also show that this excludes the expenditures for assembly, testing, IP&R, software, and any other associated expenses. The final cost, or bill of materials, is $469, which is around 153.8% more expensive than the retail price at which Samsung offers the Galaxy S23 Ultra.

What will happen to the remaining $730 then? Actually, Samsung does not make that much money from each Galaxy S23 Ultra produced. The pie chart above notes that it excludes expenditures for software, IP&R, assembly, testing, and other associated expenses. Therefore, when you add the bill of materials to everything else, you see that the pricing is beginning to make sense. Yes, the business still makes a profit on each item it sells, but the actual amount is far lower than one would anticipate, thus it is crucial to remember this.

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Muhammad Zuhair is a tech enthusiast who loves to stay up to date on the latest developments in the field. He is always on the lookout for new and exciting ways to explore and engage with technology. Whether he is tinkering with gadgets or reading up on the latest trends, Muhammad is always eager to learn more and stay ahead of the curve
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