Its production costs 40% of the retail price
The Nikkei report shows that Samsung is making great money with its foldable smartphones. At least on the Galaxy Z Fold4
Despite the fact that the technologies used to produce such devices are very expensive, the smartphone itself is also far from cheap. As a result, according to the source, the manufacturing cost of the Fold4 is only 40% of its retail price. Of course, this does not take into account R&D and other similar costs, but the ratio is still impressive. Thus, for each Fold4 sold, the company has a good profit. For comparison: the same indicator for the iPhone 14 Pro Max is 46%, that is, Apple receives less profit from each smartphone. At the same time, Fold4 is also more expensive in absolute terms.
One reason is the high localization. It turns out that almost 50% of all components are produced in the same place where the smartphone is produced. Of course, Samsung also benefits from the fact that some of the components are produced in-house, including the expensive screen.
