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Each Galaxy S5 costs Samsung just $256 to make, just a tad higher than a Galaxy S4

Each Galaxy S5 costs Samsung just $256 to make, just a tad higher than a Galaxy S4
Are you interested to know how much it costs Samsung to produce each Galaxy S5, exactly? Well, the magical number you are looking for is no more or less than $256 – this is the cost of the components in the device. As a comparison, each Galaxy S4 purportedly cost Samsung between $236 and $244.50. This was revealed by a recent teardown of the recently-launched device, conducted by IHS, a market research agency. It appears that most of the components in the flagship are mostly recycled ones and "there's really nothing special inside".

According to IHS, the display of the device, which is among the best AMOLED displays we've seen in a while, is among the most expensive components of the phone – it is estimated that each one costs Samsung $63 to build. The South Korean company also uses its own DRAM and flash memory chips, which come with a combined cost of $33. Nonetheless, it is unclear what is the material cost of the Qualcomm Snapdragon 801 SoC found in the Galaxy S5.

IHS: “There’s no breakthroughs, there’s nothing earth-shattering. It’s really just a continuation of what has come before.”


What's more interesting, however, is the estimated build cost of the fingerprint sensor that is embedded into the home button of the smartphone – the hit-or-miss component, produced by unnamed manufacturer, purportedly costs just $4. As a side comparison, the far more accurate fingerprint sensor that Apple used for the iPhone 5s costs around $15. 

Moreover, the build cost of the heart rate sensor at the back of the Samsung Galaxy S5 is just $1.45. The sensor is produced by Maxim, a manufacturer that also provides various power management chips for the flagship. Up until now, Samsung used Qualcomm power management chips in most of its devices.

However, we should take into consideration that the overall component cost of the device does not include the hidden expenses that concern the software, the research, the marketing, and other additional factors that form the retail price of the Galaxy S5.

If you are curious to see what's inside Samsung's finest, you should check out iFixit's teardown of the device that we reported several days ago. The device comes with a mediocre repairability score of 5 out of 10 points.


source: Re/code via SamMobile

51 Comments
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posted on 15 Apr 2014, 09:55 6

1. Tizen007 (Posts: 516; Member since: 07 Jan 2014)


If Samsung flows the market with smartphones PA flows the website with Samsung news.

posted on 15 Apr 2014, 10:31 13

13. tech2 (Posts: 2165; Member since: 26 Oct 2012)


I assume, PA is also forcing you to read each and every Samsung article and comment on it too ?

posted on 15 Apr 2014, 11:25 2

23. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


Why didn't I see in this article that the "premium" iPhone5S(BOM) cost ONLY $199??????

Bashing Samsung, but saving Apple's a...??????

posted on 15 Apr 2014, 11:35 1

27. Martin_Cooper (Posts: 457; Member since: 30 Jul 2013)


Ehmm they did post that LONG time ago when that was a news. Not news anymore, No one is bashing samsung, plus having the 60% of world market of phones you expect most of the news to be around samsung, good and bad ones.

posted on 15 Apr 2014, 11:48

28. sipha (Posts: 283; Member since: 12 May 2012)


Mmmh, 60% marke share?? who is your source of tech news?? Or did you forget to divid by 2??

posted on 15 Apr 2014, 16:19

32. ecmedic4 (Posts: 202; Member since: 02 May 2013)


Probably because this article is about the S5, not the iPhone? What does the iPhone have to do with the costs of the components for the S5? Right - absolutely nothing. Are you unable to not bring up something about Apple in every comment you make? Don't you get tired of trolling?

posted on 15 Apr 2014, 21:31

41. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


All the iboys here pretending to be Android fans, say that Samsung makes cheap "plastic" flagship phones but sell them almost at the price of the "premium" ALUMINUM iphone. Right?
Besides every article on the tech-media is about iphone. No matter what is about- S5 or else.
Even the M8 articles are about the "suprimacy" of the iphone's ALUMINUM.

posted on 15 Apr 2014, 22:01

44. marlboro (Posts: 94; Member since: 27 Mar 2014)


ironically, apple products>fake apple products=samsung products=fake samsung products...

posted on 16 Apr 2014, 06:12 1

53. darkkjedii (Posts: 11800; Member since: 05 Feb 2011)


Maybe you shoulda been paying attention, instead of trolling and trying to start trouble. That article came out shortly after the 5s did.

posted on 15 Apr 2014, 09:58 6

2. htcforlife (Posts: 50; Member since: 15 Apr 2014)


what a rip off!!!!!
even after taxes and stuff sammy truly rips people off
no wonder the oneplus one is gonna sell big!!!!!!

posted on 15 Apr 2014, 10:03 8

3. mayur007 (Posts: 440; Member since: 10 Apr 2012)


haha one+ is gona sell more ???

no way it will me more pricey than s5 not just s5 overpriced iphone as well..

stop fanboyism.. be practical

posted on 15 Apr 2014, 10:15 4

7. Commentator (Posts: 2432; Member since: 16 Aug 2011)


He said sell big, not sell more.

posted on 15 Apr 2014, 10:20

9. mayur007 (Posts: 440; Member since: 10 Apr 2012)


hmmmmm my mistake,, sorry..
but still not gona sell well ..

posted on 15 Apr 2014, 11:23

21. wumberpeb (Posts: 437; Member since: 14 Mar 2011)


If everybody was buying devices based on bang for your buck and didn't pay attention to advertising or hype, nobody would be buying iPhones or Galaxies and the Nexus 5 would have a 12 week back order

posted on 15 Apr 2014, 10:40 1

14. NokiaFTW (Posts: 2040; Member since: 24 Oct 2012)


The oneplus ain't gonna sell. Nobody even knows what it is. The S5 is a popular phone already. Do you really think an unknown company can best Samsung?

posted on 15 Apr 2014, 10:55 3

16. Taters (Posts: 3220; Member since: 28 Jan 2013)


Actually if you factor in logistics, factory maintenance, paying the engineers, and not to mention the huge amounts they dump into R&D and marketing everywhere, their profit margins are probably the most reasonable out of all the manufacturers including your beloved HTC.

posted on 15 Apr 2014, 11:14

19. true1984 (Posts: 592; Member since: 23 May 2012)


he wasnt talking about htc...

posted on 15 Apr 2014, 17:36

37. Taters (Posts: 3220; Member since: 28 Jan 2013)


Just going by his name.

posted on 15 Apr 2014, 11:23 3

22. sipha (Posts: 283; Member since: 12 May 2012)


Very ignorant comment, after software, R&D, marketing, VAT, domestic taxes and foreign taxes.. This phone can easly hit something near $400 and that just the cost for the manufacture, whose gona add 20% profit & they send it to the whole seller 10% profit and they send it to retailer 20% profit... And then BAAM customer gets it for $749!! & you do know that the iPhone is $199 to build??

posted on 15 Apr 2014, 11:27 1

24. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


See same article in other sites.
The (BOM) price of iPhone5S is ONLY $199.

Than thy again.

posted on 15 Apr 2014, 16:23

33. ecmedic4 (Posts: 202; Member since: 02 May 2013)


The iPhone has nothing to do with the costs related to the S5, this article is about the S5, not the iPhone, not HTC phones, not any other phone, its about the S5! Stop trolling!

posted on 15 Apr 2014, 19:25

39. willard12 (Posts: 817; Member since: 04 Jul 2012)


You do notice that the iPhone is mentioned in the article, right? But hey, why would people do a cost comparison to another popular device? I mean, who compares costs anyway?

posted on 15 Apr 2014, 21:39

42. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


"what a rip off!!!!!" (????)

WTF?
S5 (BOM = $256)
"premium" ALUMINUM iphone 5S (BOM = $199

posted on 15 Apr 2014, 10:06 6

4. refillable (Posts: 641; Member since: 10 Mar 2014)


I think the extra $300-$500 is common from named manufacturers. Please note that they need to get profits. They also need to pay their employees, maintaining their Customer support as well as service, etc. If you are willing to pay $300 for such smartphone, why not design, fabricate and take care of everything all by yourself? This is why Custom 'White Desktop' PCs are cheaper.

Ah, yes, wouldn't you be surprised if I told you that an Iphone 5S only takes $175 to manufacture but sold at a stupid $850?

posted on 15 Apr 2014, 10:27 1

11. refillable (Posts: 641; Member since: 10 Mar 2014)


Oh yes, Don't forget ads. It surely adds up costs. I completely forgot it the time I was writing the above statement.

posted on 15 Apr 2014, 23:09

45. fireblade (Posts: 708; Member since: 27 Dec 2013)


the extra $300 is for band aid case. It's very expensive

posted on 15 Apr 2014, 23:57 1

46. refillable (Posts: 641; Member since: 10 Mar 2014)


The band aid texture is designed for purpose, so that the phone sticks better to your hand. If you don't like it, you can get the Z2. Please stop complaining about it.

posted on 15 Apr 2014, 10:11 3

5. StraightEdgeNexus (Posts: 3415; Member since: 14 Feb 2014)


Really iPA is it 'just' $256 or should i tip you that an 'iconic premium' phone with mediocre specs just cost ~$150. Also this is just BOM not actual cost of production assembly.

posted on 15 Apr 2014, 10:16 1

8. Commentator (Posts: 2432; Member since: 16 Aug 2011)


Not to mention marketing.

posted on 15 Apr 2014, 10:46

15. Finalflash (Posts: 1799; Member since: 23 Jul 2013)


Now now, don't mention facts or anything, this is PA we are talking about here. Still, at least the BOM went up by $10 almost, the iPhone 5-5s was like $2 or something.

posted on 15 Apr 2014, 11:10 1

18. stealthd (Posts: 968; Member since: 12 Jun 2011)


Cost of assembly only really adds a few dollars per phone to the cost

posted on 15 Apr 2014, 16:26 1

34. ecmedic4 (Posts: 202; Member since: 02 May 2013)


Troll some more why don't ya. Read the article. "However, we should take into consideration that the overall component cost of the device does not include the hidden expenses that concern the software, the research, the marketing, and other additional factors that form the retail price of the Galaxy S5."

The article is only about the cost of the components, of course it doesn't include all the other costs associated with the device, but they did mention that in the article.

posted on 16 Apr 2014, 01:37

50. PeterK. (Posts: 98; Member since: 13 Nov 2013)


Thank you for bringing that out.

posted on 15 Apr 2014, 10:13

6. chocowii (Posts: 327; Member since: 30 Jan 2014)


Even if Samsung releases the S6 with very minimal upgrades, they would still sell millions.

posted on 15 Apr 2014, 10:26

10. papss (unregistered)


Like the S4?

posted on 15 Apr 2014, 10:31 1

12. grahaman27 (Posts: 347; Member since: 05 Apr 2013)


wow! thats significantly more than the "premium" iphone.... which costs $190.

posted on 15 Apr 2014, 16:30

35. ecmedic4 (Posts: 202; Member since: 02 May 2013)


Well i would imagine that when/if the iPhone gets a larger screen, the cost will raise quite a bit, considering the screen on the S5 is what cost samsung the most, so i would figure a larger screen on the iPhone would increase costs too, so that could be part of the difference why the S5 costs that much more than the iPhone.

posted on 15 Apr 2014, 11:07

17. majp89 (Posts: 103; Member since: 18 Jun 2013)


Lol just think if they didn't have to have such a huge profit margin on this if they actually invested on premium hardware and not just gimmicky features.

posted on 15 Apr 2014, 11:16

20. shuaibhere (Posts: 1518; Member since: 07 Jul 2012)


What do you mean by premium hardware???Aluminium body???
No need for it....Many are happy with plastic for it's durability....
And for most of other OEMs it would cost even less because....
LCD displays are lot cheaper compared to Amoled displays...

posted on 15 Apr 2014, 17:40

38. Taters (Posts: 3220; Member since: 28 Jan 2013)


Um hate Samsung all you want but the last thing they are is cheap. I am sure the Z2 and HTC One M8 fall well below $256 and closer to Apple's $199 per handset.

So their profit margins are not huge, at least compared to the rest of the industry.

posted on 15 Apr 2014, 11:31

25. 1ceTr0n (Posts: 510; Member since: 20 May 2012)


Thats one hell of a markup...

posted on 15 Apr 2014, 11:35

26. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


Well the BOM of the "premium" iPhone 5S is ONLY $199 but it's breakthroughs, is earth-shattering. Right?

P.S.
Why PA didn't write the BOM of iphone 5s, as other sites did?

posted on 15 Apr 2014, 15:30

30. Ashoaib (Posts: 2264; Member since: 15 Nov 2013)


If iPA will write the price of iphone, ppl will have a big shock... so PA doesnt want to give a shock to its readers

posted on 15 Apr 2014, 16:15 1

31. papss (unregistered)


Another sambot obsessed with apple I see? Like SS you just can help yourself eh

posted on 15 Apr 2014, 16:36

36. ecmedic4 (Posts: 202; Member since: 02 May 2013)


Why do they need to write the BOM of the iPhone 5S when the article is about the costs of the GS5? If it was an article comparing the costs of the 2 then sure, but this article is strictly about the S5, and no other phone, no other phone is mentioned. You can't resist throwing a bash in at Apple though in any comment you make since your a blind Apple hating troll. I don't see why it matters so much, since the BOM of any phone doesn't take into account the other costs associated with it. Its not like you take the retail cost and subtract the BOM cost and thats what these companies make.

posted on 15 Apr 2014, 11:51 1

29. Ahsan (Posts: 29; Member since: 09 Jun 2011)


Marketing cost+ R & D cost +etc.+ $256 = Now calculate......

posted on 15 Apr 2014, 20:06

40. techloverNYC (Posts: 405; Member since: 20 Nov 2012)


Anyone know how much it cost HTC to build all new one aka M8?

posted on 15 Apr 2014, 21:52

43. The-Sailor-Man (Posts: 977; Member since: 25 Mar 2014)


Tech media will never write this, not to compromise their favorite POS-ALUMINUM-JOKE.

Much cheaper than S5 though:
Cheaper LCD diplay(the biggest part of the every smartphone price)
Not the best version of S800
Smaller battery
Less sensors
ALUMINUM not more expensive than plastic (see iphone5S BOM)
POS camera

posted on 16 Apr 2014, 05:37

52. Napalm_3nema (Posts: 1099; Member since: 14 Jun 2013)


Are you serious? Cast aluminum does cost more than cast plastic, by a significant margin, in a BOM.

posted on 16 Apr 2014, 00:38 1

47. mmmanuuu (Posts: 215; Member since: 05 Nov 2013)


However, we should take into consideration that the overall component cost of the device does not include the hidden expenses that concern the software, the research, the marketing, and other additional factors that form the retail price of the Galaxy S5.

posted on 16 Apr 2014, 01:02

48. NIGER.AREA (Posts: 11; Member since: 14 Apr 2014)


You really hate Samsung this much? This article is full of hate or should I say jealousy. Not even a hit and miss finger print scanner nor a mediocre repeatability score can stop me form getting this phone.

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