The cost of producing a Samsung Galaxy S21 Ultra 5G costs about 533 US Dollars, which is around 7 percent lesser in comparison to its predecessor, the Galaxy S20 Ultra 5G, as per a BoM analysis.
The analysis arrives from Counterpoint Research, which stated that the Galaxy S21 series has an optimized cost structure with the devices’ cost falling between 400 to 600 US Dollars. The reduction in cost is also helped by the integrated 5G modem in the main chipset, which simplifies the new system and helps bring the cost down. Furthermore, the South Korean tech giant adopting the in house Exynos 2100 processor also enables more cost effectiveness.
Samsung’s ecosystem contributed as high as 63 percent of the total BoM (bill of materials) cost for the international edition. While the device cost lower to produce, it also saw great sales in markets such as Europe and North America. The series overall sales volume in February alone was 22 percent higher than the 2019 Galaxy S20 series, reaching over 3.4 million units in shipments. The report added that the Galaxy S21 and Galaxy S21+ were the most cost oriented models, with BoM cost drops by about 12 to 13 percent than their predecessor, the Galaxy S20 and Galaxy S20+.
Parv Sharma, research analyst, commented on aggressive pricing of the Galaxy S21 series stating that, “In line with the price drops, Samsung managed to deftly balance the performance versus cost. It made a significant improvement in computing power with the 5nm process-based mobile platforms, either Snapdragon 888 or Exynos 2100 depending on the sales market, and also introduced a refreshed design for the rear camera bump.”
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