The Samsung Galaxy Note 20 Ultra 5G has a Bill of Materials cost of US$548.90 or 42% of the US$1,299.99 price tag
A report from Counterpoint Research has thrown up some fascinating details about the costs involved in creating a high-end flagship smartphone like the Samsung Galaxy Note 20 Ultra 5G device. The components for the Galaxy Note 20 Ultra apparently have a total cost of US$468, and that sum gets bumped up by things such as testing and assembly, packaging, accessories, and the S Pen, to US$548.90. As the impressive smartphone is currently priced at US$1,299.99 then the Bill of Materials represents 42% of the final price.
Of course, some might be dismayed by the seemingly huge amount Samsung adds to the BoM to arrive at the chosen price point for the 128 GB configuration of the Galaxy Note 20 Ultra 5G. After all, that almost 58% difference equates to US$751.09 in monetary terms. But that is not pure profit for Samsung, as you also have to factor in costs that are accrued through the research and development phase, marketing, taxes, various licenses, employee salaries, etc. In fact, Counterpoint actually praises Samsung for being able to stuff US$468’s worth of components inside the Galaxy Note 20 Ultra.
Another way of comparing the cost and percentage difference between BoM and retail price is to look at those offered up by other Samsung devices: The Galaxy S20 Ultra has a lower difference of 38% while the Galaxy S10+ had a BoM that was also 42% of the MSRP. Interestingly, the communication equipment and the AMOLED were the most expensive parts, while the vital Snapdragon 865+ processor came out at just US$57. Counterpoint also produced a chart showing which companies took the most BoM share for the Galaxy Note 20 Ultra, and Samsung efficiently took 50% while Qualcomm snatched up 39.3%.