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| Samsung has higher profit margins than Apple |
Smartphone manufacturers are aware of the difference between the manufacturing cost and the selling price of their products. Of course this must be resolved. Contrary to usual, it seems that Samsung wants to guarantee a lot of profit margin. Here, the Galaxy S21 Plus's profit margin on the iPhone 13 Pro is higher than Apple's.
That's because the components of the iPhone 13 Pro are more expensive than those of the Galaxy S21 Plus. In other words, Samsung earns more from sales than Apple, especially because the components of the iPhone 13 Pro on the one hand are more expensive than the components of similar products and on the other hand the price of the Galaxy S21. Larger. .
Sources found that the iPhone 13 Pro uses LPDDR4X 6GB of RAM instead of relying on the latest LPDDR5 variant. The company also uses the same GPU as it did last year.
On the other hand, Apple offers a better camera with iPhone 13, which is equipped with a wide-angle image sensor of 1.7 μm, while the iPhone 12 version has 1.4 μm. The iPhone 13 Pro also has a more expensive chip.
The reason for the high cost of manufacturing the new generation of iPhone is due to the advent of the Pro version with ProMotion technology, which improves the refresh rate of the screen. Overall, the iPhone 13 Pro version is priced at $570.
Apple's sales are less than Samsung's
Apple sells the regular Pro version for $1,099. This is about 1.9 times the manufacturing cost. The iPhone 12 Pro, on the other hand, costs only $548 and is offered at the same price.
Speaking of Samsung, the Galaxy S21 Plus only makes $508, and it's currently priced at $1,049. In other words, Samsung's manufacturing cost is more than double that of manufacturing.
It might be strange to see Samsung's revenue from smartphone sales exceed Apple's. More precisely, the Galaxy S21 Plus. On the other hand, Apple's sales in the flagship mobile phone category have outpaced Samsung's.
Samsung may need to adjust its strategy for the next generation of Galaxy flagships. The price of the Galaxy S21 can be in many ways. Also, the profit margin that Samsung is trying to make may be too big.