According to BoM analysis, the cost of producing the Samsung Galaxy S21 Ultra 5G is about $533, which is about 7% lower than its predecessor, the Galaxy S20 Ultra 5G. The analysis comes from Counterpoint Research, which pointed out that the Galaxy S21 series has an optimized cost structure, with equipment costs ranging from US$400 to US$600.
The integrated 5G modem in the main chipset also helps reduce costs, thereby simplifying new systems and reducing costs. In addition, the Korean technology giant’s use of internal Exynos 2100 processors can also improve cost-effectiveness.
Samsung’s ecosystem contributes 63% of the total cost of the international version of the BoM (Bill of Materials). Although the production cost of the equipment is relatively low, it has also achieved good sales in markets such as Europe and North America. In February alone, the overall sales of the series were 22% higher than the 2019 Galaxy S20 series, with shipments exceeding 3.4 million units.
The report added that Galaxy S21 and Galaxy S21+ are the most cost-conscious models, and the cost of BoM is about 12% to 13% lower than its predecessors, Galaxy S20 and Galaxy S20+.
Research analyst Parv Sharma commented on the aggressive pricing of the Galaxy S21 series and pointed out: “In line with the price drop, Samsung managed to strike a good balance between performance and cost. With the help of mobile platforms based on 5nm process Snapdragon 888 or Exynos 2100, its computing power has been significantly improved.