Report Shows Samsung Galaxy S8 Costs More Than iPhone 7 To Manufacture
According to a recent report by analytics firm IHS Markit, the Samsung Galaxy S8 costs $307.50 to build, which includes the cost of materials and manufacturing. This is much higher than Apple iPhone 7 which costs $224.8 and Samsung's previous Galaxy S7 and Galaxy S7 Edge, which cost $255.10 and $271.20 to make respectively.
The estimate reveals that Galaxy S8 is $82.70 more than the iPhone 7 and $52.40 more than its predecessor, the Galaxy S7. Unfortunately, no figures were provided for the Galaxy S8+.
Here is a look at the estimated material and manufacturing costs of several high-end phones put together by statistics site Statista.
This not very surprising, considering a quality product rarely comes cheap and Galaxy S8 is a prime example. The handset's innovative design, gorgeous display, and beefy internals all bump up the basic manufacturing costs and bill of materials quite considerably.
The S8 costs around $750 and Samsung is already seeing a high demand for the phone. The preorders for the Galaxy S8 and S8 Plus surpassing the Galaxy S7 and S7 Edge's preorder numbers from February 2016. This is higher than what KGI analyst Ming-Chi Kuo has predicted.
Last month, Kuo published a report claiming Samsung Galaxy S8 will have a weaker demand than Galaxy S7. However, the current pre-order sales alone have proved him wrong.
In other related news, a report from Yuanta Securities Korea claims that Galaxy S8+ will sell more than the Galaxy S8 and it is well-known fact that manufacturers get maximum profit from their plus variant models.