Samsung’s Galaxy S7 is in hands of millions right now and most of them have been heaping praises on the handset for its design and functionality. Lots of people have been doing the drop test as well as water test. Now we are seeing reports that an analyst company named as IHS has calculated the cost incurred to build the Galaxy S7. It’s $255.
That’s almost the same cost incurred to build a Galaxy S5 2 years ago. Samsung has invested so much in its back offices that the process has been refined by leaps and bounds, bringing the manufacturing cost of the device significantly even though premium materials such as aluminium body and glass back were used.
The costliest component in the handset is the processor. The Snapdragon 820 cost $62 apiece for Samsung. The Korean giant uses its own Exynos 8890 in most of the markets and since it’s a Samsung custom processor, we believe it costs much less than its counterpart.
The 12 MP camera in the back that is being touted as the best camera in the smartphone business for its excellent low light performance and sharp images add a bill of $13 to the overall cost. Add another $5 for assembling the handset.
The final unit retails for $670 in the united states without any carrier contract. That a cool profit of $415 per unit sold.
One critical thing to note is that the entire profit earned will still have to be spent on advertising campaigns, promotional offers, research and development teams. So the overall earnings for Samsung is much less than the mentioned figure.
The cost for other components such as the display and body unit have not been mentioned. The analyst company is expected to release all the information very soon.
Stay tuned.
