As you might already have noticed, the Samsung Galaxy S8 is much more expensive than last year’s Galaxy S7, because its internal components are priced higher than previous models. The material list reveals that Samsung needs to spend more money to produce the Galaxy S8 compared to the Galaxy S7.
The inventory list announced by IHS Markit shows that the components of the Galaxy S8 carry a total price tag of $ 301.60 and that the added $ 5.9 in manufacturing costs raise the bill to 307.50 dollars for each unit. That means Samsung needs to pay $43.34 more than the Galaxy S7 to produce the S8.
The cost of the Galaxy S8 is also $36.29 higher than the total cost of the Galaxy S7 Edge. Unfortunately, each component in the report does not have separate prices. However, the top cost of NAND flash memory and DRAM is $41.50 and the price of 3,000mAh battery is $4.50. We also see the front and rear camera modules in the device listed as $20.50, and $6.50 for all sensors, including the fingerprint sensor.
The Samsung Galaxy S8 AMOLED display panel costs $85, while the Exynos 8895 chipset, which powers the device, costs only $45. The total cost of the smartphone’s Gorilla Glass 5 protected rear panel is $5.70.
Various expenses are also added to the retail price
The Galaxy S8 is currently sold for about $720, which gives us the difference between production cost and the lowest retail price, which is around $412.
In addition to that, retailers and operators can also implement their own discount policies. That’s why it’s hard to tell how much money Samsung make per Galaxy S8 smartphone.
Nevertheless, Samsung received over 1 million pre-orders in total, which is much higher than the S7 fiasco of the past year. When these figures are taken into consideration, it is possible to say that the company will make boatloads of money from Galaxy S8 sales.