Teardown reveals Samsung S5 costs about $320 to build

Teardown reveals Samsung S5 costs about $320 to build

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 S5Samsung S4
Operating SystemAndroid 4.4 KitKatAndroid 4.2.2 Jelly Bean
ProcessorQualcomm Snapdragon 805 quad-core 2.5GHzQualcomm Snapdragon 600 1.9GHz Quad-core
Built-in Memory2GB RAM2GB RAM
Display5.1-inch / 1,920 x 1,080 pixels (432 ppi) / Super AMOLED / 16M colors5-inch / Super AMOLED / Full HD 1,920 x 1,080 pixels (441ppi) / 16M colors
CameraRear: 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
ConnectivityWi-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 jackWi-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
micro-SD support up to 128GB

16GB internal storage
microSD card (up to 64GB
Battery2,800mAh2,600mAh
Dimensions142.0 x 72.5 x 8.1mm136.6 x 69.8 x 7.9mm
Weight (g)145130

 


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