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Screen is no longer the most expensive thing on a smartphone

# **Screen is no longer the most expensive thing in a smartphone** **Central processing unit and networking components have become the most expensive components in a high-end smartphone.** In According to statistics on the production cost of smartphones, the screen used to be the most expensive input component. This component has many impacts on the customer’s user experience on the device. In recent years, though, processors and networking components have risen to become the most expensive pieces of hardware in high-end phones. Specifically, in a newly published report by *Counterpoint Research*, the SoC (System on Chip), which contains the central processing unit, GPU, network modem and many other key components, is the most expensive component on the market. the Galaxy S23 Ultra. A Samsung flagship needs 469 USD in hardware costs for the 8 GB RAM, 256 GB memory version. In which, the cost of the central processor accounted for 35% of the amount, equivalent to 164 USD. The large screen, QHD + resolution produced by Samsung itself costs $ 66, equal to 18% of the total cost. The amount of money for camera hardware has also increased significantly in recent years, as manufacturers focus on developing imaging features. According to *Counterpoint*, Samsung has optimized costs by sharing camera clusters with many manufacturers, including Sony and SEMCO (a subsidiary of Samsung). On the other hand, Qualcomm also rose to become the largest supplier for the Korean company’s flagship phone. The US semiconductor business accounted for 34% of the total cost of S23 Ultra components. Meanwhile, the number of Samsung components decreased to only 33%. The above trend is also true for Apple phones. A 128GB iPhone 14 Pro Max costs $464 to manufacture. In which, the processor chip and network modem accounted for 33%, the screen 20%. In addition, the cost Apple has to pay to its chip manufacturing partners has steadily increased over the years, when converting the production line to a smaller process. In addition, 5G network chips (sub-6 or mmWave) are also expensive, especially during the semiconductor supply chain crisis. Finbarr Moynihan, Vice President of Marketing at MediaTek, said that the smartphone industry is still in a period of decline in sales, which could continue for many more months. However, the average value of devices is forced to increase, because of the popularity of 5G phones, which have a higher price point than products using traditional LTE networks. In the price increase of the group of semiconductor components on the flagship, an unusual trend appeared in the last 2 years. Many Chinese phone makers choose MediaTek’s 5G SoC for high-end phones, rather than Qualcomm or Samsung. According to data published by the Taiwanese company, 20% of flagships in the billion-dollar market are running Dimensity chips.



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