Tech

Samsung makes a bigger profit margin than Apple


Smartphone manufacturers earn the difference between the manufacturing cost and the selling price of their products. This is with the deduction of expenses, of course. Contrary to the norm, it seems that Samsung is trying to guarantee itself a profit margin that is too large. This is where the profit margin of the Galaxy S21 Plus is greater than the profit margin of Apple in the iPhone 13 Pro.

This happens with the components of the iPhone 13 Pro being more expensive than the components of the Galaxy S21 Plus. That is, Samsung earns more than Apple from the sale, especially since the components of the iPhone 13 Pro are more expensive than the components of its counterpart on the one hand, and on the other hand, the selling price of the Galaxy S21 is greater.

And I discovered Sources The iPhone 13 Pro will have LPDDR4X 6GB RAM instead of relying on the latest LPDDR5 type. The company also uses the same GPU it used last year.

Read also: Apple’s October conference announcements

But on the other hand, Apple offers better cameras in iPhone 13 phones. It comes with 1.7 µm sensors for the wide camera, compared to 1.4 µm in the iPhone 12 versions. Besides, the iPhone 13 Pro phones offer a more expensive chip.

What makes the new generation of iPhones more expensive to manufacture is the advent of the Pro versions with ProMotion technology, which increases the screen refresh rate. All in all, the Pro version of the iPhone 13 costs Apple up to $570.

Read also: Apple’s revenue from games exceeds PlayStation and Xbox

Apple earns less than Samsung

Apple sells the regular Pro version for $1,099. That’s roughly 1.9 times the cost to manufacture. On the other hand, the iPhone 12 Pro cost only $548 and was sold at the same price.

Speaking of Samsung, the Galaxy S21 Plus costs just $508 to make and is currently priced at $1,049. That is, Samsung earns more than twice the cost of manufacturing.

Read also: New Apple Music features in iOS 15

It may be strange to find that Samsung earns more than Apple in sales of its smartphones. Specifically, the Galaxy S21 Plus. But on the other hand, Apple achieves more sales than Samsung in the category of flagship phones.

Perhaps Samsung needs to adjust its strategies in the next generation of Galaxy flagship phones. As the Galaxy S21 pricing may be unsuccessful in many respects. Also, the profit margin that Samsung seeks to achieve may be too large.

Also Read: The Fastest Way to Offload Photos to iPhone

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