Key insights

• ⚙️ MKBHD's dream phone includes a big 5800 Mah battery with fast and wireless charging.
• 🔋 Custom device boasting up to 22 hours of video streaming, with a battery upgrade to 6,000 mahs at $13 per battery.
• 📱 Display specifications similar to Samsung S24 Ultra with additional cost, and cameras featuring hardware from S24 Ultra and software from iPhone 16 Pro.
• 💰 Adding 1TB of flash memory and 16GB of RAM costs $90, while using Snapdragon 8 Elite processor typically priced around $190.
• 💸 Smartphone prices involve hidden costs such as bespoke components and R&D, adding up to a substantial amount.
• 🔬 R&D process includes costs for staff salaries, software licenses, manufacturing, engineering, and certifications, which can add up to millions.
• 👨‍💼 Meeting with the big man revealed crucial factors such as the need for an operating system, software engineers, cash flow issues, and factory trust for the new phone venture.
• 💼 Total cost for developing Marquez's smartphone is $23,535,000, which includes negotiating costs and offering a free operating system.

Q&A

• Why can negotiating with factories for smartphone production be costly?

  Negotiating with factories for smartphone production can be costly due to a lack of established relationships, specific requirements, and potential additional costs for smaller smartphones. It may also lead to a premium of up to 15%. However, the company decided to exclude certain expenses and offer a free operating system, making the total cost for developing Marquez's smartphone $23,535,000.

• What crucial factors were highlighted for the new phone venture?

  The big man pointed out crucial factors such as the need for an operating system, a team of 150 or more software engineers, cash flow issues for new companies due to upfront manufacturing costs, and difficulties in obtaining support from premium factories for new ventures.

• What are the hidden costs associated with smartphone prices?

  Smartphone prices involve hidden costs such as bespoke components and R&D. These include components like the bespoke motherboard, R&D costs for form factor and functionality, staff salaries, software licenses, manufacturing, engineering, and certifications which can amount to millions.

• What are the notable features of MKBHD's dream phone?

  MKBHD's dream phone includes a big 5800 mAh battery with fast and wireless charging, a display similar to Samsung S24 Ultra, cameras featuring hardware from S24 Ultra and software from iPhone 16 Pro, and high-end components like 1TB of flash memory, 16GB of RAM, and a Snapdragon 8 Elite processor.

• What is the focus of the video?

  The video focuses on the specifications and cost calculation of MKBHD's dream smartphone, incorporating components like a big battery, fast wireless charging, camera hardware, storage, RAM, and a high-end chipset.

• 00:00 We consulted experts to find out the specs and cost of MKBHD's dream smartphone. The cost will be revealed at the end. The video will cover the bill of materials, including a big battery and fast wireless charging.
• 00:51 Discussing the cost and specifications of a custom device including battery, display, and camera components.
• 01:56 The total cost for camera hardware, storage, RAM, and a high-end chipset adds up to $500, excluding additional components. No components from a specific supplier are requested.
• 03:14 Smartphones cost more than just their retail price due to hidden costs like bespoke components and R&D, adding up to a substantial amount.
• 04:11 The big man pointed out several crucial factors like the need for an operating system, software engineers, cash flow issues, and factory trust for the new phone venture.
• 05:08 Negotiating with factories for smartphone production can be costly due to lack of established relationship and specific requirements. Additional costs for smaller smartphones may be incurred. However, the company decided to exclude certain expenses and offer a free operating system, making the total cost for developing Marquez's smartphone $23,535,000.