Galaxy S4 Disassembled, Samsung Profit Revealed

S4
To compete in the global Smartphone market, Samsung sells its latest Android Smartphone products, the Galaxy S4, at a considerable price premium.

With such a high price, what is the actual cost of production necessary to create a Samsung Galaxy S4? This question was answered by the institute tried to market analyst IHS iSuppli. To answer these questions, IHS iSuppli dismantle the gadget to find out how much it cost.

Once finished unpacking component per component  Samsung Galaxy S4 32GB, IHS iSuppli concluded that the production cost of the Smartphone ranges from 237 U.S. dollars.

This means that Samsung took the gross margin of 402 dollars or about 62 percent, assuming the price of the  Galaxy S4 32GB in the U.S., which is 639 U.S. dollars.

Quoted by AllThingsD, Friday (10/05/2013), most manufacturers rely on other companies to get a Smartphone device component. However, Samsung is known for being able to produce its own components Smartphone.

Well, with that excess, Samsung finally decided to fill all key components in the Galaxy S4 with parts of their own making. Taking advantage itself of course components will make the cost of production is cheaper Galaxy S4, which means the higher margin sales.

“The strength of Samsung is the ability to make their own components. They continue to add to the list of components that can supply them to themselves,” said IHS analyst Vincent Leung.

One component that is not self-produced Galaxy S4 processor for the U.S. market. Samsung Galaxy S4  with ARM processors made by Qualcomm. According to IHS iSuppli, the price of this processor is about 20 U.S. dollars.

As for the global version, Samsung is using homemade processors, the Exynos 5 Octo. It is said, Samsung requires a fee of 28 dollars to produce.

One component of the price is quite expensive is part of the display. Samsung requires a fee of 75 dollars to produce this piece. The screen part is included with the super-strong glass Gorilla Glass made by Corning company.

Samsung also manufactures its own parts storage media. IHS estimates that it takes a fee of 28 dollars for a single component with a capacity of 16GB.

There are also some parts that are not supplied by Samsung itself, such as Bluetooth and WiFi chips manufactured by Broadcom, the chip power management by Maxim, and wireless chip by Triquint Semiconductor.

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One Response to “Galaxy S4 Disassembled, Samsung Profit Revealed”

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