The Galaxy S23 Ultra is the epitome of Samsung’s fixed-display device lineup. According to new research published, a little under 40% of the Galaxy S23 Ultra’s cost can be attributed to materials alone.
Counterpoint Research published a bill-of-materials (BoM) analysis of the Galaxy S23 Ultra and the components used in the device. According to that breakdown, it costs Samsung $469 to build the flagship phone. That price reflects the cost of raw materials and leaves out operation and R&D costs associated with development. Of course, the latter two expenses are diluted over a large number of developed devices.
For each device manufactured, the biggest component expenses come down to the Qualcomm SoC, display, and camera array. That’s very much expected considering how much weight the company puts into a good screen, fast processing, and exceptional camera abilities.
According to the analysis provided, the Snapdragon 8 Gen 2 – including its GPU and modem – makes up about 35% of the total S23 Ultra material cost. Again, that’s not a surprise, considering the Qualcomm SoC in the Galaxy S23 Ultra is a specific version of the 8 Gen 2, built for Galaxy devices. The S23 series is also the chipset’s first home, with the Snapdragon 8 Gen 2 only just now finding a home in other devices.
Coming in second for the biggest cost is the display. Samsung’s Dynamic AMOLED display does not come cheap, hitting an 18% share of the total device cost. The impressive 6.8-inch display has a resolution of 1440 x 3088 and hits a max refresh rate of 120, all contained under a sheet of Gorilla Glass Victus 2.
The third biggest single component is the camera, at 14% of the cost. Both Samsung and Sony have a hand in the camera setup, with Samsung having developed the 200MP camera and 12MP front-facing lens. The 12MP ultrawide and 10MP telephoto lens on the rear of the S23 Ultra are designed by Sony. Together, they make a pretty outstanding array with some serious raw power.
Interestingly enough, Samsung is responsible for developing 33% of the materials in the S23 Ultra, only overshadowed by Qualcomm at 34%.
The Galaxy S23 Ultra, as a finished product, is not cheap. The base model comes in at $1,199, making it one of the most expensive devices on the market – stumped only by the entry point of foldables. Of course, that doesn’t hinder its popularity as it’s a genuinely good device with aspects that reflect the price. Now, while it costs users that much, Samsung is only fronting 39% of that cost and making quite a profit.
Of course, for a true representation of what the S23 Ultra costs, we’d need to know how much the company spends on marketing and manufacturing, as well as research and development. Those three can’t be quantified per singular device, though we know it isn’t cheap. While Samsung pays $469 per device in raw components, there’s a reason the Galaxy S23 Ultra is marked at $1,199 new and marked down significantly with trade-ins.
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