The Galaxy S25 Ultra stands as Samsung’s premier smartphone at present, although it is not the most expensive— that title still belongs to the Galaxy Z Fold series. Priced at $1,299, consistent with the previous year’s model, recent findings reveal that the production costs for the S25 Ultra are higher than those for the Galaxy S24 Ultra.
A report from Counterpoint Research provides a detailed analysis of the build costs for the S25 Ultra. The figures indicate that the bill of materials (BoM) for the 12GB + 512GB variant is approximately 3.4% greater than that of its predecessor.
While the increase from the S23 Ultra to the S24 Ultra was modest, this new rise is more significant. This is primarily attributed to a substantial 21% increase in processor costs, as Samsung has transitioned from the Snapdragon 8 Gen 3 to the more expensive Snapdragon 8 Elite for Galaxy SoC, a change that Qualcomm had previously indicated.
In contrast, production costs for the camera and various other components have seen reductions. Camera costs have dropped by 8% compared to the previous year, largely because Samsung reused its main, 3x zoom, and selfie cameras.
Additionally, the prices for wireless components have decreased by over 10%, with the frame becoming approximately 8% cheaper. This is due, in part, to the more efficient titanium frame manufacturing process introduced in the S24 Ultra.
Samsung has also streamlined its connectivity setup, moving to a single-chip transceiver, which has cut costs by over 10%. Despite the increase in some production costs, Samsung has managed to maintain a modest overall cost increase of just 3.4%, a commendable achievement considering the enhancements made.
The company appears to be strategically adding new features while trimming expenses in other areas to retain the $1,299 price point. The Galaxy S25 Ultra embraces a new modern design, departing from the Note-like aesthetic for the first time.
With its flat edges, rounded corners, and a large 6.9-inch display, it embodies the look of a contemporary flagship, all while still incorporating the beloved S Pen.
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