According to a Counterpoint report The Galaxy S23 Ultra costs Samsung $469 to produce. This is the data that appears in the bill of materials, an abbreviation for “Bill of Materials”, which we can translate directly as “material invoice”. It includes the price of all the components used in this terminal as well as the cost of its installation and assembly.

This means that the production cost of the Galaxy S23 Ultra contains everything you need to start using the terminal, Since, as we indicated, the $469 includes the assembly of the components and the final assembly of the terminal, in fact this process represents 8% of the total cost of the terminal, as we can see in the attached graph.

The most expensive components inside the Galaxy S23 Ultra are the Snapdragon 8 Gen2 SoC and the cellular connectivity system, which make up 35% of the total, which equates to $164.15. It is clear that the new Qualcomm SoC is very expensive. In second place is the screen, which accounts for 18% of the smartphone’s cost, amounting to $84.42.

In third place are cameras, which represent 14% of costs, i.e. $65.66. The fourth position is for the memory system, which represents 11% of the cost, or what is equal, $51.59. Finally, we have assembly, which adds up to 8% of the total cost, i.e. $37.52.

Within the category other costs are included components such as PCB, vibration system, inductors, resistors, connectors and other essential things for the proper functioning of the Galaxy S23 Ultra. However, this list of costs does not include others that are also very important and necessary for the commercialization of this smartphone, such as research and development, marketing and logistics expenses.

All in all, it is clear that even if we include these costs, Samsung has a fairly large profit margin, after all, the selling price of the Galaxy S23 Ultra in the basic version is $1,199 before tax and €1,409 in Spain including tax. It’s unclear what actual net income margin the company will receive for each Galaxy S23 Ultra unit sold, but we’re sure we’re talking several hundred dollars.

In the last graph, you can see the companies that make the most money for each piece of this Samsung terminal produced. The absolute winner is Qualcomm, and it’s clear that Samsung provides a significant portion of the components it needs. Micron is also doing well, other companies have a smaller share.