IHS Markit has done to the Galaxy S8 what it usually does to these high-end phones when they launch. It has taken apart the phone, one part at a time, and has calculated the cost of its components. With the material cost of $307.50, the Galaxy S8 has been deemed one of the most expensive phones ever made. IHS Markit says that the phone costs $43 more to make compared to the Galaxy S7.
The Galaxy S8 is also much more expensive to make compared to the iPhone 7. According to IHS analysis last year, the iPhone 7 cost was $224. This makes the latest Galaxy S8 manufacturing expensive by over $80 compared to the manufacturing of the Apple iPhone 7.IHS Market says that the total cost of components inside the Galaxy S8 is $301. In addition, the research firm estimates that Samsung pays around $5 as labour cost for each unit of the S8.
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“The higher total BOM costs for the Galaxy S8 seem to be part of a trend that reflects something of an arms race in features among Apple, Samsung and other phone manufacturers, as they all try to add new and distinguishing hardware features,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “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.”
Although, IHS has not specified it, chances are that the most expensive components in the Galaxy S8 are likely to be the processor and the screen. Screen in particular is almost always the most expensive component in a phone and considering the screen in the Galaxy S8 — curved, OLED and high resolution — it is certain that the screen will be the most expensive component in this phone.
Although IHS does specify that the battery pack in the S8 probably costs $5 and storage (RAM + internal storage) costs little over $41.
For now, IHS says that it has not yet done the similar calculations for the Galaxy S8+, which is a bigger phone. But last year, the Galaxy S7 Plus, which was bigger, bad higher cost of manufacturing compared to the Galaxy S7. So, this year too it is safe to assume that the Galaxy S8+ will be even more expensive to make compared to the S8.
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