Here’s How Much it Costs Samsung to Build New Galaxy S8

Samsung Galaxy S8

How much does it cost Samsung to build the all new Samsung Galaxy S8?

Today, we are bringing you the answers and you’ll be surprised to know that even after implementing exciting and more sophisticated components, Samsung earns double the manufacturing costs.

Samsung S8 has recently hit the markets and is priced at 720 dollars.

That seems to be huge price tag, but it’s worth spending on a phone that’s​ perfectly crafted to re-innovate the design standards.

The new Bezel less Samsung S8 comes with new features like infinity display, Bixby Virtual Assistant and many other exciting features.

New Samsung S8 smartphone is the first shipping in volume capable of gigabit-LTE speeds; aims to restore consumer confidence following Note 7 challenges.

Well the question is, does it actually cost 720 dollars for Samsung to manufacture and market the S8?

So how much profit does Samsung stands to earn on each Galaxy S8 it sells? IHS Markit seems to have the answer.

According to a report by IHS Markit, it costs Samsung, 307.5 $ which includes manufacturing costs to make a single unit is Galaxy S8. This amount is calculated from the Bill of Materials ​(BOM) for the 64 GB variant.

It is also mentioned that this amount is $43.34 more than what it took Samsung to manufacture the Galaxy S7. The S7 edge was manufactured at $36.29 less.

Here is the price of some individual components that were part of this beautiful device.

Component Price
Display $85
Chipset $45
Memory $41.50
Camera $20.50
Sensors $6.50
Battery $4.50
Other $6

It should be noted that an  64GB Galaxy S8 has an initial retail price of $720. It doesn’t mean that Samsung is saving about $412.50 on each S8 as there are manufacturing, distribution as well as promotional costs as well.

“While there are new non-hardware features in the Galaxy S8 such as the Bixby virtual assistant, from a teardown perspective the hardware in the Galaxy S8 and that of the forthcoming new iPhone is expected to be very similar,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.

Also Galaxy S8 is the most expensive phone to be built.

Galaxy S8 cost

Source: BI

Here is a detailed video about Galaxy S8 review:

You can order the flagship phone from Amazon and enjoy the coolest Android phone.

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Do you think that Galaxy S8 is worth the price? Tell us in comments.

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2 Responses

  1. Luke Meiritz-Reid says:

    Yep and it costs a 3rd of that for Apple to pay Foxconn to Manufacture iPhone 7 in China using less expensive materials with stuff all innovation.
    Yet Apple charges their iFans Mega ..yep Huge Profits for Apple

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