Home / Innovative / The Galaxy S21 will likely cost less to manufacture than the Galaxy S20. Do we smell a drop in price?

The Galaxy S21 will likely cost less to manufacture than the Galaxy S20. Do we smell a drop in price?



Samsung has negotiated sharp price cuts with some large domestic smartphone parts suppliers, which could lower the company’s manufacturing costs Galaxy S21 reports SamMobile citing a South Korean publication The Elec.

The unit price for RF components has apparently been reduced by around 9 percent, which is quite a bit, given that rates are typically reduced by no more than 5 percent. Screen modules were also reportedly discounted.

The decline seems to have something to do with the sluggish sales of the Galaxy S20, resulting in underutilization of the production lines. Some suppliers appear to have lowered prices to increase line utilization and the practice then expanded to include more suppliers.
It remains to be seen whether these concessions will be passed on to buyers of the Galaxy S21 in the face of Samsung in the form of a price cut not the one who is afraid to pocket heavy edges.

Samsung’s third-quarter earnings rose 58 percent year over year, and while the company didn’t provide a breakdown of the results, it is believed that earnings were boosted by a surge in smartphone sales.


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