Galaxy S4 is quite cheap to build

[Raj8396]

As it turns out because samsung makes most of the components for the s4 it is quite cheap for them to builed it around $236

What do you guy think about this actual unlocked phone would cost you $696.50 (Amazon)

 

Source

http://goo.gl/S6qfQ

 

hardwarecanucks.

http://goo.gl/gXbhq

[eshbop]

That's why he asked about unlocked phones, not contracts.

 

That's pretty bad considering here (Australia) you'll get charged $700+ for a grey import, add probably another $100 if you buy Australian stock. Someone is making a small killing. But if people are willing to buy them then that's just how it's going to be.

[SirReallySam]

They need some profit, like a pen costs a couple pennies to make and we spend £5 for one you know what I mean...

[Sneaky]

The phone may only cost $236 to make but they are also spending a lot of money on other things such as advertising.

[tabuburn]

The phone may only cost $236 to make but they are also spending a lot of money on other things such as advertising.

Don't for get funding for R&D on next-gen tech.

 

Honestly, I'm not that surprised. Pretty much most, if not all, components are made by Samsung themselves. Samsung already makes displays (monitor/TV), they make ARM based CPU's (Exynos), they make cameras, they make laptops, and most importantly, they make flash and a lot of it (number one manufacturer and seller of flash in the world). Add those all up and you get a smartphone. (They also make a lot of other stuff: refrigerators, A/C, heavy equipment etc.)

[Nicktrance]

That's just a bill of materials, you have to add some R&D, manufacturing costs etc, in the end, just like Linus said, they don't make as much profit off each phone as you might think. TBH that's actually not cheap at all, the BOM for iPhones is a about 200$ I believe and it's priced higher at release. isuppli hasn't provided a report about the HTC one but it probably costs about the same.

[SSOB]

They obv. bought the materials in such high quantities that it's extremely cheap for them to produce.

[tabuburn]

They obv. bought the materials in such high quantities that it's extremely cheap for them to produce.

They pretty much have a large stock pile of raw materials already since smartphones are comprised of parts that Samsung already makes for their other products.

[nath10597]

I doubt that counts the cost of labor to build, factory running costs, design costs and shipping.

so it costs more than that overall.

[Raj8396]

I know that you guys are saying that stuff like R&D, shipping packaging and stuff cost but i dont think that it could cost 2/3 rd of the cost of a device.

[tabuburn]

I know that you guys are saying that stuff like R&D, shipping packaging and stuff cost but i dont think that it could cost 2/3 rd of the cost of a device.

There's also the cut for the retailers and overhead in-case of RMA's.

[Nicktrance]

And software... like I said that's not cheap for just a BOM.

[IPCharger]

Yeah they need to make some profit because they don't get any money when you buy apps later from Google Play (unlike Apple which makes tons of profit on the hardware and software).

[Scheer]

I know that you guys are saying that stuff like R&D, shipping packaging and stuff cost but i dont think that it could cost 2/3 rd of the cost of a device.

 

I would believe them if they told me that 9/10ths of the cost was for R&D and general business overhead. Consider labor, power, equipment to produce the materials, benefits for employees, and the the list goes on...

[CoffeeBlack]

Apple's profit margin on the iphone 5 is similar on it's cheapest model and more on the other two.

 

http://articles.washingtonpost.com/2012-09-20/business/35494758_1_new-iphone-earpods-lte-networks

[mgsstar]

They do need to get profit from this and to have the money to pay the employees at Samsung and the rent and employees at Samsung Stores.

[Thibaudv]

That's just a bill of materials, you have to add some R&D, manufacturing costs etc, in the end, just like Linus said, they don't make as much profit off each phone as you might think. TBH that's actually not cheap at all, the BOM for iPhones is a about 200$ I believe and it's priced higher at release. isuppli hasn't provided a report about the HTC one but it probably costs about the same.

The HTC One probably costs a little more to make, as the specs are about the same, but the HTC One has that aluminum unibody design that takes 200min per phone to make. Also they had problems with the ultrapixel camera delivery so that one probably costs a little more too.

 

I think the S4 will drop in price more than the HTC One in the future.

[XiaoPigs]

Not surprised that it's this cheap and yet it cost so much to buy one without a contract. Plenty of factors that causes this to happen. Most of them already mentioned above so I won't be adding any.

[Irontheater]

Well, that's the main reason why the HTC One is 200$ cheaper, and yet still has the same components, and a better build quality and speakers.

 

Though, I am wondering, how much time before we can DIY the cellphones... If by building it myself, it would cost half the price, I would give it a shot, there is a reason why everyone here builds their own PC and doesn't get it premade.

 

That way, we would be able to really configure it to our liking. Give or take more thickness for battery, CPU power for battery life/price, 720p/1080p... etc

 

There was a rumor circulating not long ago that this is what the X Phone is all about, haven't heard about it since then.

[Nicktrance]

The HTC One probably costs a little more to make, as the specs are about the same, but the HTC One has that aluminum unibody design that takes 200min per phone to make. Also they had problems with the ultrapixel camera delivery so that one probably costs a little more too.

 

I think the S4 will drop in price more than the HTC One in the future.

 

I know but this is just a BOM, so machining costs are not applied yet :)

 

I agree on the last point, although for different reasons: Samsung can afford to drop price to increase sales, HTC: not so much :(, and that happened with the One X too.

[Thibaudv]

I know but this is just a BOM, so machining costs are not applied yet :)

 

I agree on the last point, although for different reasons: Samsung can afford to drop price to increase sales, HTC: not so much :(, and that happened with the One X too.

True dat.

 

Although, when I bought my HTC Sensation (the generation before the One X) it was about 7months old and it was on average about 50euros cheaper than the S2.

So maybe in two years, the roles might be inverted!

[DLM_012]

And people wonder why it's plastic... You guys finally have your answer. It's cheaper to manufacture a plastic phone.

[ericlee30]

Hey every ones got to make profit in some way, I think it could be a little cheaper but all in all it is a great phone.

[GuppyTech]

Custom made Smartphones Builds, now that is a very interesting idea indeed.

 

I support it!

[Testbuilds]

They need some profit, like a pen costs a couple pennies to make and we spend £5 for one you know what I mean...

See people, this guy understands that they can't just sell stuff for the same price they make them, since they need profit.