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Galaxy S21 will likely cost less to make than the Galaxy S20, do we smell a price cut?

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Galaxy S21 will likely cost less to make than the Galaxy S20, do we smell a price cut?
Samsung has negotiated steep price cuts with some major domestic smartphone parts suppliers and this may bring down the manufacturing cost of the Galaxy S21, reports SamMobile, citing South Korean publication The Elec.

The unit price of RF components has apparently been reduced by around 9 percent, which is quite a lot as rates are usually cut by 5 percent at most. Screen modules have allegedly been discounted too.

The drop seemingly has something to do with the sluggish sales of the Galaxy S20, which resulted in underutilization of production lines. Some suppliers apparently lowered the price to increase line utilization rate, and the practice then spread to more vendors. 

It remains to be seen if these concessions will be passed on to Galaxy S21 buyers in form of a price reduction, given Samsung is not the one to shy away from pocketing hefty margins.

Samsung's Q3 profit rose 58 percent year over year, and although the company did not provide a breakdown of the results, it is believed that its earnings were boosted by an uptick in smartphone sales. 

The chaebol, whose sales suffered heavily at the hand of the pandemic, is now rebounding. Per a CNBC report, the Galaxy Note 20, Galaxy Z Fold 2, and Galaxy Z Flip 5G are performing quite well.

Increased focus on online sales and pent-up demand also bolstered the company's earnings. And, of course, it also appears to be benefitting from Huawei's misfortunes.

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Samsung Galaxy S21 specs
  • Display 6.2 inches 2400 x 1080 pixels 120Hz Refresh rate
  • Camera 12 MP (Triple camera) 10 MP front
  • Hardware Qualcomm Snapdragon 888 8GB RAM
  • Storage 128GB, not expandable
  • Battery 4000 mAh
  • OS Android 11 Samsung One UI

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