IHS: 32GB Galaxy S5 costs Samsung slightly over $250 to make
After carrying out a recent teardown of Samsung's newest flagship handset, the Galaxy S5, IHS has released its trademark bill of materials (BoM) estimates, which hints at the cost which Samsung is apparently bearing to manufacture one unit of the new handset.
According to IHS' BoM estimates for Galaxy S5 handset, Samsung's manufacturing cost for the 32GB model of the handset is slightly more than $250.
The BoM estimate of $250 for the Galaxy S5 handset - which retails for $600 - includes only the cost of the physical components in the handset. It does not include software, R&D, marketing, and several other costs in bringing the handset to the market.
Going by the IHS BoM estimate, a large portion of the $250 manufacturing cost of the Samsung Galaxy S5 handset goes to the handset's 5.1-inch, 1080p AMOLED screen, which IHS says costs $63. The next most expensive component of the handset is its 2.5 GHz Snapdragon 801 SoC, which - inclusive of the cellular modem - costs $41.00. As per IHS, the cost of hardware additions like heart rate reader and fingerprint reader is quite low.
Meanwhile, about the overall design of Galaxy S5, IHS said: "The S5 exemplifies a conservative evolutionary design approach. There are no revolutions or giant steps forward in this design."
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