Samsung Galaxy S8 recently launched in India will be available for Rs 57,900. But the actual price that costs Samsung to manufacture each unit is different and less.
The price varies based on taxes, marketing costs and on profit that a firm intends to withdraw from sale.
IHS market, in its latest analytics, has unveiled the manufacturing cost of a Galaxy S8 unit is around half of its selling price.
According to the report, the total bill of materials (BOM) for the 64GB storage variant of the Galaxy S8 comes out to be around $301.60 (approx. Rs 19,500). After $5.90 in basic manufacturing costs is added, Samsung’s total cost to make the Galaxy S8 rises to $307.50 (about Rs 19,900).
The amount is noted to be $43.34 (approx. Rs 2,800) more than the manufacturing cost of its predecessor Galaxy S7.
Overall, the standard Galaxy S8 version, which costs $720(approx. Rs 46,500), is priced about $421.5 (approx. Rs 26,700) higher than it took Samsung to make it.
However, the estimated price doesn’t disclose exact profit Samsung earns on each unit. The expenses include marketing costs, taxes, and retailer and carrier cuts, among others.
“While there are new non-hardware features in the Galaxy S8, such as a virtual assistant called Bixby, from a teardown perspective the hardware in the Galaxy S8 and that of the forthcoming new iPhone is expected to be very similar,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.
