IHS reported a materials bill of the new Samsung phone.
IHS has released its report concerning Samsung Galaxy S5’s teardown. The report unravels the approximate costs of materials used to create this phone and came to the appalling conclusion that the phone costs $256 to build. However considering that its predecessor, the Galaxy S4 cost somewhat similar ($244), the news is not that great a shock. The 5.1” full HD Super AMOLED display is perhaps the most costly part of the phone.
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The display alone costs $63, which is still $12 cheaper than the display utilized on the Galaxy S4. Alongside this, the DRAM and flash memory are worth $33. By streamlining its products, Samsung probably hopes to reduce the manufacturing cost of its flagship phone.
The fingerprint sensor costs just $4 which constitutes a much cheaper cost than what iPhone 5S’s finger print sensor incurs in its manufacturing process. Apple’s flagship phone costs around $199 with the sensor alone costing $15, considering that the materials employed in Samsung’s sensor and in that of Apple’s differ, this price differentiation is plausible. IHS’s report however, does not include marketing, distribution, software and R & D costs.