According to research firm IHS who recently conducted a teardown of Samsung's new flagship smartphone, the Galaxy S5, it was revealed that the phone costs around US$256 (S$320) to build.
The smartphone retails for $1,068 in Singapore, without contract.
The highest costing component is believed to be the display, which is likely to cost around US$63. DRAM and flash memory are supplied by Samsung themselves and are expected to cost around US$33.
Interestingly, the fingerprint sensor in the Galaxy S5 costs around US$4, whereas the one found in Apple's iPhone 5S costs more than triple at US$15. However, Apple's iPhone 5S costs less to make overall, just around US$199.
This means that with a selling price of around US$660, Samsung makes about US$400 on each Galaxy S5, giving it a gross profit margin of about 60 per cent.
However, it must be noted that the US$256 price stated here does not include the cost of software, distribution and marketing, which means the actual profit margin is even lower.
Comparison between S5 and S4
Samsung S5 | Samsung S4 | |
Operating System | Android 4.4 KitKat | Android 4.2.2 Jelly Bean |
Processor | Qualcomm Snapdragon 805 quad-core 2.5GHz | Qualcomm Snapdragon 600 1.9GHz Quad-core |
Built-in Memory | 2GB RAM | 2GB RAM |
Display | 5.1-inch / 1,920 x 1,080 pixels (432 ppi) / Super AMOLED / 16M colors | 5-inch / Super AMOLED / Full HD 1,920 x 1,080 pixels (441ppi) / 16M colors |
Camera | Rear: 16MP f/2.2, 0.3 second autofocus, LED flash Front: 2.0MP 1080p recording @ 30fps | Rear: 13MP / Autofocus / LED flash Front: 2MP 1080p recording @ 30fps |
Connectivity | Wi-Fi 802.11 a/b/g/n/ac, MIMO, GPS/GLONASS, Wi-Fi Direct, DLNA, Bluetooth 4.0 LE, NFC, IR LED, micro-USB 2.0 (MHL 2.0), 3.5mm headphone jack | Wi-Fi 802.11a/b/g/n/ac, Wi-Fi Direct, DLNA, Bluetooth 4.0 LE, NFC, IR LED, micro-USB 2.0 (MHL 2.0), 3.5mm headphone jack |
Storage Type | 16GB/32GB internal storage | 16GB internal storage microSD card (up to 64GB |
Battery | 2,800mAh | 2,600mAh |
Dimensions | 142.0 x 72.5 x 8.1mm | 136.6 x 69.8 x 7.9mm |
Weight (g) | 145 | 130 |
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