The Samsung Galaxy S21 series is $200 cheaper across the board than the Galaxy S20 range, and a bill of materials (BoM) analysis by Counterpoint Research shows that the new phones also cost less to make.
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.
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.
Galaxy S21 BoM cost estimates