Samsung's Galaxy S21 costs up to 13% less to make than Galaxy S20, analysis reveals
The analytics firm says that the Galaxy S21 range has an optimized cost structure, with their cost falling between $400 and $600. They are up to 13 percent cheaper to manufacture than their predecessors thanks to a cost-cutting strategy that includes the use of more in-house parts, less ambitious hardware specs and removing accessories from the retail box.
The 128GB mmWave Galaxy S21 Ultra that retails for $1,199 costs Samsung $533 to manufacture, according to the BoM. That's seven percent less than the Galaxy S20 Ultra. Samsung's S21 Ultra is equipped with two mmWave antenna modules, one less than its predecessor. The cost of connectivity also went up slightly because of UWB and S Pen support.
The Galaxy S21 and S21+ have cost-oriented designs, on the other hand. Their BoM cost has apparently dropped by 12 to 13 percent compared with the Galaxy S20 and S20+. Both phones feature lower resolution displays, and the Galaxy S21+ also has less RAM. The new series has also dropped its predecessor's Time-of-Flight (ToF) unit, something which consumers don't seem to mind.
Unlike last year's models, the new phones don't come with chargers and earphones, which saves the company money. The international variants are powered by the home-brewed 5G-enabled Exynos 2100, which further helps with cost-cutting. Samsung-made products made up to 63 percent of the total BoM cost.
These savings have been passed down to consumers through lower prices, a move that is certainly proving to work. Samsung just announced its first-quarter financials. The company had a record-breaking first quarter, thanks in part to strong Galaxy S21 sales. Counterpoint says that the earlier than usual release has also seemed to help.