A few moments ago, Nathin made a video with MKBHD where it was said that if MKBHD’s dream phone is made here, then how much will it cost exactly? Here it is known that it will cost $500, and it will take about $23 million to make that phone. But one thing is clear: in the future, if a mobile phone is going to be made in 2025, then what will be the price of it? So, I thought that the answer to this question should be given, and you guys should be told what is visible and what is the story behind the scenes here. And for this, I also talked to some people in the industry.

Understanding the Bill of Materials

First of all, I would like to tell you that here I am only going to talk about the bill of material, not how much will be the price of different components here. How much will the 5G modem cost? How much will the royalties have to be paid here? How much does a processor cost here? And what is the price of displays in the phone here? And top of the line, if you want to install cameras, how much will a full camera module cost with Sony’s new sensor? These are all things. Because if you look here, many things are variable, and I want to tell you one thing: the bill of material is the same as the different components that are installed in your mobile phone. What is the price of a processor in it? What is the price of a camera sensor? What is the price of a battery? But that’s not all in a mobile.

Beyond Materials – Manufacturing and Other Costs

Apart from these materials, it has to be manufactured. The cost of machines comes. Different employees have to be hired. Even the cost of research and development comes. And yes, different companies also negotiate with suppliers—give us a chip here, give us a processor, all these things—because for every company, deals and rates are different sometimes. And sometimes, the bigger the order, the more discount people get. So, this is how the process of making a mobile phone starts here.

The Processor – A Key Cost Factor

If you are thinking that in a mobile phone, exactly which processor is the most expensive, well, you are right to some extent. From the video of MKBHD, it is known that the price of Snapdragon 8 Elite is $190.

But you will be surprised when I tell you that Apple’s A18 Pro is available for almost $70. Even if you look at it, you can get a Tensor G4 for $70-$80. Now the thing is that these chips and their prices come from TSMC, but Qualcomm Snapdragon keeps its margin high. It does its marketing. It even takes out the cost of its research and development.

And yes, I would like to tell you one thing: to enable every feature of Snapdragon, they take royalties and fees. It’s not just that if you buy a processor, all these features will come to your mobile—that never happens. Every feature is enabled, and its royalties and fees remain, after which it is said that it usually goes up to $190, and it can go more than that if you don’t have a big order.

Display Costs – A Major Expense

Usually, the price of MediaTek Dimensity goes up to $150, and most processors run out in $100—most 90% of the processors. And some processors that come with a good high range are expensive here. That is, the rate of the process remains very variable. But one of the most expensive items in a mobile phone is its display.

Usually, it starts at $35-$40, and one of the high-end displays goes up to $100-$120 in the market. These are the displays that are curved, which have a high refresh rate, an LTPO panel, and more peak brightness. Yes, to handle all this, the top-of-the-line displays are very expensive. And yes, the expensive displays are made by companies like Samsung. After that, you can see a company like BOE making its panels at a lower price.

The Cost of Camera Modules

If I talk about cameras, then yes, I was asking about a multiple camera setup in which there are triple cameras—a normal camera, an ultrawide, and a telephoto zoom lens. All three have Sony’s latest sensors. So, how much will the price of this whole module be here? When I found out about it, I got an estimate of $60-$70.

Because if you look here, the price starts from $10-$20 for a good camera module. Many times, camera sensors are sold for $10-$10. The top-of-the-line camera sensors in mobile phones—the more expensive lenses you put on the camera, the more expensive it will be.

And yes, I am talking about the hardware of the camera module. The different lenses here, like the ZEISS lenses, I am not talking about them here because their branding is also spent here. And yes, I can also tell you one thing—in ZEISS branding and Leica branding, there is a benefit here that the company has to show its camera hardware setup to the mobile phone company in their office.

RAM and Storage – Hidden Costs

Along with this, let’s talk about the memory, i.e., RAM. So, the price of RAM starts from $10-$15 here, and their price goes up to $20-$30, which is the cost of your latest LPDDR5X RAM, which you get to see in 8GB, 12GB, 16GB.

Along with this, the most surprising thing for me is that the price of storage in the mobile phone here is very exciting. Because here, a storage price goes from $10-$15 to $20-$30. I want to tell you one thing—the cost between 256GB and 512GB goes up to Rs.200-Rs.300 or Rs.400 maximum.

But many companies, when it goes to 256GB and 512GB, increase it to Rs.3,000, Rs.4,000, Rs.5,000. Because all of it goes into their profit margin. But in reality, not even Rs.500 is spent to double the company’s storage. This is also a truth.

Why Costs Are Calculated in USD

And yes, I want to tell you one thing—I am talking about dollars only because international trade is done in dollars. And not all components are made in India. You have to import all these components from abroad, and they are done in dollars only.

So, the rates I got were also in dollars. And if you want to find the rate in Indian Rupees, then the suggestion would be that you multiply the latest price of 1 USD with these dollars. You will also find the rate of Indian Rupees in current.