Manufacturers make a big profit with every premium smartphone sold, and the Samsung Galaxy Note 20 Ultra looks no different.
According to Counterpoint Research, they just estimated that the manufacturing cost of the Galaxy Note 20 Ultra SKU with 128GB of storage space is 548 US dollars, making its profit margin reached 57%.
This is $20 more expensive than the Galaxy S20 Ultra. The most expensive components on the Galaxy Note 20 Ultra spec sheet are Qualcomm’s Snapdragon X55 5G modem and radiofrequency antenna system at a price of $92.20. Of course, this expensive component is inseparable from Qualcomm’s latest application processor Snapdragon 865+, which costs $57.
Counterpoint Research did not give a specific estimate of the manufacturing cost of the Exynos 990 version of the Galaxy Note 20 Ultra, only that about 70% of its hardware is purchased internally, which is likely to make its profit margin higher than the Snapdragon version.
The above-mentioned costs are only the cost of hardware, but also considering licensing costs, R&D costs, marketing costs, etc. The true profit margin of the machine will certainly not be so high. In any case, it is clear that Samsung is making a decent profit with every Galaxy Note 20 Ultra sold. But we have to wait and see if sales actually hold up or if the high price has scared some customers.
