A new BoM comparison reveals the Galaxy S25 Ultra’s higher build costs, fueled mainly by a next-gen Snapdragon chip and cutting-edge fabrication.
S25 Ultra Build Cost Sees Sharpest Spike Since S23
According to Counterpoint Research, the Galaxy S25 Ultra (12GB + 512GB) costs 3.4% more to build than the S24 Ultra, marking the largest year-over-year increase in recent Galaxy Ultra history.
- By contrast, the S24 Ultra’s cost increase over the S23 Ultra was relatively modest.
- The S25 Ultra’s higher Bill of Materials (BoM) is primarily due to its cutting-edge chip, upgraded camera hardware, and maturing material choices.
Snapdragon 8 Elite: The Biggest Cost Driver
The Galaxy S25 Ultra’s Snapdragon 8 Elite SoC is the most significant contributor to cost inflation.
- Built on TSMC’s 3nm (N3E) process, this chip boasts ~16 billion transistors and a custom Oryon CPU architecture.
- These upgrades caused a 21% increase in SoC cost compared to the Snapdragon 8 Gen 3 used in the S24 Ultra.
- Samsung had to bear the full burden of the chip’s premium price after canceling Exynos 2500, a move that further intensified cost pressures.
Memory, Display, and Frame: A Mixed Picture
Memory costs have fluctuated:
- The S24 Ultra saw a significant cost dip from the S23 due to oversupply.
- The S25 Ultra brings a slight increase, reflecting a more balanced supply-demand curve.
Display panel costs actually declined in the S25 Ultra:
- While the S24 Ultra’s anti-glare coating and 2600-nit panel raised its display cost by 4% over the S23,
- The S25 Ultra benefits from OLED price drops and minor upgrades, bringing a single-digit cost reduction.
Casing material evolution also played a role:
- The Titanium switch in the S24 Ultra drove a 32% jump in frame cost over the S23 Ultra.
- However, as titanium production scaled and matured, Samsung achieved an 8% cost reduction in the S25 Ultra’s frame.
Connectivity and Camera: Lower Costs Despite Upgrades
RF and connectivity hardware costs have consistently declined:
- The S23 Ultra used two SDR735 transceivers, while newer models consolidated to a single SDR875 unit.
- This brought double-digit percentage savings in both the S24 and S25 Ultra models.
Camera costs, surprisingly, dropped by 8% from the S24 to the S25 Ultra—even with new hardware.
- The 10x periscope lens on the S23 Ultra was replaced by a 50MP 5x periscope in both the S24 and S25 Ultra.
- The S25 Ultra upgraded the ultrawide sensor from 12MP to 50MP, but other modules remained unchanged, keeping costs low.
Final Takeaway
Despite significant hardware advances, Samsung managed to keep the Galaxy S25 Ultra’s BoM increase at just 3.4%.
- This was achieved by offsetting chip cost spikes with declines in display, casing, RF, and imaging components.
- The result is a flagship that’s more powerful than ever—without a dramatically higher production cost.
