Is Samsung making a 50% profit on every Galaxy S10+ sold?

Terminal updated: March 4th, 2019 at 15:44 UTC+01:00

Smartphone manufacturers tend to brand more money on premium smartphones as they accept a higher turn a profit margin. Samsung may sell tens of millions of affordable devices but its flagships are the ones that actually bring in the money. It volition be looking to rake in some serious coin with the Milky way S10 series. One can imagine that the visitor has a healthy profit margin on the devices.

How salubrious, though? Companies never reveal the true price of manufacturing their devices and the markups they utilize to make money. A simple calculation of the expected bill of materials cost of the Galaxy S10+ suggests a profit margin of over 50 percent. However, it'south unlikely that's how much Samsung is making on each unit.

Galaxy S10+ seemingly has a materials cost of $420

A summary of the BOM cost by TechInsights suggests a manufacturing price of $420 for the 8GB+128GB variant of the Galaxy S10+. That's about 42 percent of its $999 retail price. The near expensive component is understandably the Infinity-O brandish at $86.50. The processor and modem are adjacent at $seventy.50 followed by the $56.l triple-camera system.

This suggested price doesn't accept into account the money spent on enquiry and development of this device. Flagship devices crave meaning investment in R&D and Samsung pours billions into these efforts every year. Furthermore, the cost doesn't reflect expenses for auxiliary materials, assembly, shipping, promotions, discounts and more than.

Even if on the face of it the Galaxy S10+ costs 42 percentage of its $999 retail price, the deviation isn't what Samsung is pocketed. It'due south difficult to really exist certain only how much Samsung is making on each Milky way S10 model sold. Still, once all of the other costs are taken into account, it's pretty unlikely that there's a profit margin of over 50 percent on the new flagship.