Samsung Galaxy S4, the most powerful Android-powered smartphone of the South Korean phone maker has received the tear down treatment from the guys at IHS iSupply. The tear down has revealed how much Samsung has to pay for the materials of the Galaxy S4 and which is the production price compared to the Galaxy S3.
As expected, the most expensive parts of the Samsung Galaxy S4 are the 5-inch full HD Super AMOLED display and the capacitive touch panel, which have a combined price of $75, $10 more expensive than the 720p display used for the Samsung Galaxy S3.
The Exynos 5 Octa chipset, created using two quad-core modules with Cortex A15 and Cortex A7 cores and the a powerful tri-core PowerVR SGX 544MP3 GPU has a relatively modes manufacturing price, of only $30. Still, judging by the price of $17.5 payed for the Exynos 4410 SoC of the Galaxy S3, we can say that Samsung has made a pretty big sacrifice in order to bring the Galaxy S4 to a performance level that should outmatch the competition.
The upgrade for the two front-facing and rear-facing cameras from the 8 MP + 1.9 MP for the Galaxy S3, to 13 MP + 2 MP for the Galaxy S4, can be translated into an extra cost of only $1, the user-facing + rear-facing camera combo of the S4 having a price of $20, compared to the $19 cost of the S3. The 16 GB of flash memory + 2 GB of RAM DDR3 have a cost of $28.
Compared to the Galaxy S3, the sensors package (accelerometer, RGB light, geomagnetic, proximity, gyroscope, barometer, IR gesture and temperature and humidity varieties) of the Galaxy S4 brings an extra cost of $16, and the GPS receptor, the Bluetooth module, and the WiFi modem cost another $9. The removable 2,600 mAh battery has a price of $5.6, while the rest of the mechanic/electromechanic components are raising the price with another $22.
Summing up, the parts required to manufacture a Samsung Galaxy S4 unit in the HSPA+ variant have a price $236, to which you add another $8 for the labor.
Judging by the price of about $579 at which the Samsung Galaxy S4 is expected to hit the US territory, the South Korean company will have a profit of $335 per unit, or even more if it is to consider the price of around €600 – 700 rumored for the European market.
Actually, besides the costs induced by the stores that are intermediating the sales towards the final users plus the custom duties, a significant part from the final price is attributed to the hidden costs. These include the research and development actives, marketing costs for the advertising campaigns, licencing costs for technologies belonging to other companies, and the development of the software apps that ship with the device.
Compared to its predecessor, the new Samsung Galaxy S4 has a production price that is %15 higher, or $30.4 more than the production price of the Galaxy S3.