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Galaxy S7 costs Samsung $255 to make

Galaxy S7 costs Samsung $255 to make

It cost Samsung $255 to make the Galaxy S7, the same it cost it to make the Galaxy S5 two years ago, according to market analysts from IHS.

The official full retail price of the Galaxy S7 stands at $670 in the United States. IHS has previously revealed a similar bill-of-materials to actual price figures for high-profile handsets like the iPhone.

The Galaxy S7 is a gradual improvement over the Galaxy S6 and this latest report reveals that this is evident in many of the parts that Samsung uses for the new generation handset.

Interestingly, the most expensive component in the Galaxy S7 is said to be the new Qualcomm Snapdragon 820 system chip, coming in at an estimated cost of $62, almost a quarter of the total bill of materials. The Galaxy S7 ships with the Snapdragon 820 in the United States, while in international markets the phone will be equipped with a Samsung-made Exynos chip.

Another important part of the Galaxy S7, the new 12-megapixel camera with Dual Pixel technology for extremely fast auto-focus, carries an estimated cost of $13.70. The new camera comes with larger individual pixels and much wider, f/1.7 lens that allows it to capture more light and perform impressively well in dim conditions. The cost mentioned above, though, is for the hardware only and does not account for the software work that Samsung has done.

You can take a look at the exploded view of the torn down Galaxy S7 right below.

Galaxy S7 costs Samsung $255 to make

source: IHS via Re/code

130 Comments
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posted on 14 Mar 2016, 09:24 14

1. Rafishant (Posts: 341; Member since: 13 Oct 2015)


And many people are still calling Apple for "customers rip-off"!

posted on 14 Mar 2016, 09:28 32

2. adi9764 (Posts: 64; Member since: 16 Feb 2016)


The iphone 6s costs less than 200 dollars to manufacture and apple spend less money on ads and that stuff plus you get a gear vr with the s7 plus 6 paid games for free and you get galaxy gifts and also if you use samsung pay you will get a free 30$ gift card

posted on 14 Mar 2016, 09:28

3. hung2900 (Posts: 961; Member since: 02 Mar 2012)


"IHS’ cost estimate includes figures for hardware components plus about $5 for final assembly and doesn’t include an estimate for the cost of software development, marketing or distribution."

You see? Tax cost? Shipping cost? % for dealers?
Remember HTC Sony cost to build is abt the same, price even higher but they have faced losses.

Apple and SS are profitable due to they sell A LOT of phones, not their phone overprice.

posted on 14 Mar 2016, 09:32 3

5. Macready (Posts: 1360; Member since: 08 Dec 2014)


This is estimated(!) material cost and still 21% more than the same estimation for the iPhone 6S 6 months ago (should be even cheaper now). It does not account for R&D, patents licensing, assembling, salaries, packaging, accessoires (free VR for many S7 owners...), warranty costs, etc etc.

Add to that the fact that overall (actual) profit margin for Samsung is on average 3 to 4 times lower, not in the least because of higher R&D expenditure.

posted on 14 Mar 2016, 09:32 45

6. SamsungPhanboy (banned) (Posts: 765; Member since: 31 Mar 2015)


It's time for people to understand this:

If you are going to call Apple phones overpriced, Samsung phones are also overpriced.

It costs around 236 to make a 6s
It costs around 255 to make a S7

They both sell around 700 bucks unlocked. How the hell does anyone come to the conclusion that one is overpriced when the margin is this similar? Phonearena readers are getting dumber by the minute.

If anything Samsung and Apple phones are overpriced compared to the Nexus 6P and similarly priced phones.

posted on 14 Mar 2016, 09:33 1

7. Rafishant (Posts: 341; Member since: 13 Oct 2015)


I don't care who spend more on ads. Nothing came into my pocket.
The Gear VR promotion is only available in the US and some regions, and it really costs pennies for Samsung.
Same thing could be said for Samsung Pay.

Now, take all of the those listed promotions and give a much cheaper Galaxy phone like LG, HTC, and Huawei.

posted on 14 Mar 2016, 09:37 7

8. Johnnokia (Posts: 1138; Member since: 27 May 2012)


Actually, both Apple and Samsung flagships are overpriced.
Kudos to htc, LG, and many other Chinese manufacturers.
Not everyone in this world is very rich to purchase $700+ phone.

posted on 14 Mar 2016, 09:38 11

9. natypes (Posts: 1104; Member since: 02 Feb 2015)


I'm pretty sure people call Apple devices overpriced for the lack of value they provide and the not really profit-per-phone.

posted on 14 Mar 2016, 09:39 11

11. PapaSmurf (Posts: 10457; Member since: 14 May 2012)


PA readers love to side with their favorite OEM or OS instead of looking at a picture as a whole.

posted on 14 Mar 2016, 09:41 4

12. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


What? I upvoted him. He said the truth, which is why he has so many.

posted on 14 Mar 2016, 09:45 28

14. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


This is the most idiotic comment I have ever seen on phonearena.

LACK OF VALUE!????

1. Millions value the iPhone, which is why they purchase the device year after year. It's a solid product

2. You easily get the best resale value out of any phones with an iPhone. If you try to argue this you're an absolute moron.

3. You do realize value is subjective right? I use Android for instance, but my family and far less tech savvy people absolutely love iPhones. They are easy to use, and work very well.

Phonearena needs to start banning all of these iPhone hating morons who only believe it's acceptable to own an Android phone.

posted on 14 Mar 2016, 09:47 1

15. Macready (Posts: 1360; Member since: 08 Dec 2014)


The quoted $236 is actually for the 6S Plus, the regular 6S was quoted at $211, 6 months ago (should be less now).
http://appleinsider.com/articles/15/09/29/estimated-iphone-6s-build-cost-pegged-at-21150-iphone-6s-plus-at-236

posted on 14 Mar 2016, 09:47 1

16. bur60 (Posts: 876; Member since: 07 Jul 2014)


Not true if u look at apple, true if u look at Sammy (still overpriced as well)

posted on 14 Mar 2016, 09:48 10

17. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


Way to change your comment accusing SamsungPhanboy of 'instavoting'.

Such a coward you are PapaSmurf.

posted on 14 Mar 2016, 09:55 3

21. natypes (Posts: 1104; Member since: 02 Feb 2015)


Son, did I once say that was MY opinion? Your own "3." SHOULD have answered your own objections anyway. If you had the forethought to think of that first, maybe you'd realize the rest of your post was irrelevant babble.

posted on 14 Mar 2016, 09:55

23. natypes (Posts: 1104; Member since: 02 Feb 2015)


Look out we got a badass over here. What are you 19? lol

posted on 14 Mar 2016, 09:58 2

25. Macready (Posts: 1360; Member since: 08 Dec 2014)


Uh, in most of Europe, Korea, etc. the VR promotion was and actually still is valid too.

Cheaper Huawei Mate 8? Street price is actually pretty close, just like the G5 (within $50).

posted on 14 Mar 2016, 09:59 21

26. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


....Son, 1 through 3 are actually facts...

Turn your device off immediately and consult a reading comprehension specialist.

Also, way to NOT rebuttal my point. That's such a terrible way to argue. You basically are saying you don't have a counter argument. Damn you're an idiot.

posted on 14 Mar 2016, 10:02 15

27. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


If I were 19, I'd still have 13 more years on you in terms of your education level.

posted on 14 Mar 2016, 10:07 7

28. another1 (Posts: 157; Member since: 25 Dec 2015)


Owned lol

posted on 14 Mar 2016, 10:08 2

30. HugoBarraCyanogenmod (Posts: 1315; Member since: 06 Jul 2014)


Good to see those who against apologist. Samsung fanboy bash Apple just to promote their products is better. Even it's more of the same.

Fortunately more and more people are smart enough to see the truth, Xiaomi 5 cost around the same yet just sold $400 for the 128GB version.

No excuses for Sammy apologist to say they offer batter even it's just slightly than Apple, when outside offer even greater deal than Samsung with the same operating system

posted on 14 Mar 2016, 10:20

36. AllFanboysMatter (Posts: 174; Member since: 14 Feb 2016)


Rebut*

posted on 14 Mar 2016, 10:21 5

38. submar (Posts: 528; Member since: 19 Sep 2014)


3- You are so right about less tech savvy. One of my friend bought iphone 6s, and he didn't know anything about 3d touch until I show him.

posted on 14 Mar 2016, 10:33 2

43. Fallen1 (Posts: 285; Member since: 14 Nov 2014)


All Im saying is I love my new S7 Edge :)

posted on 14 Mar 2016, 10:38 1

44. zeeBomb (Posts: 2281; Member since: 14 Aug 2014)


Wow...a lot of people here never heard of research and development and marketing

posted on 14 Mar 2016, 10:46 2

45. TechieXP1969 (Posts: 12871; Member since: 25 Sep 2013)


But look at what the S offers compared to an iPhone. 1440p, better camera, faster charging, better payment system, top rated camera, top rated display, faster adopted pay system, better innovative design, ocatcore cpus, faster storage, extended storage and more. You get a bigger phone in a smaller package

You get a whole lot more with a S7 vs either iPhone. The S contains way more innovation vs ANY phone, but especially the iPhone.

That is fact no matter which one you like.

TROLL HARDER!!!!!!!!!

posted on 14 Mar 2016, 10:52 1

46. TechieXP1969 (Posts: 12871; Member since: 25 Sep 2013)


Here is why the S isn't overpriced:

This year both the iPhone and S7 both start at $649, but compare the S6 Edge, S7 Edge and the iPhoen 6S Plus side by side and even then you get so much more:

http://www.gsmarena.com/compare.php3?idPhone1=7079&idPhone2=7945&idPhone3=7243

You get a larger screen on both, yet a smaller device overall compared to the iPhone, 1440p vs 1080p, batter accurate display colors, better accurate faster focusing camera that is better at OIS and color tones and focuses faster, you get wireless charging, fast charging and wireless fast charging, you get mics that record better audio, 16:9 for taking videos and photos is better than 4:3, you get a bigger battery on both models that last longer then the iPhone, you get tones of features that are useful like splt-screen and a better one-handed mode, Samsung Pay is arguably better than Apple Pay, and the list goes on.

posted on 14 Mar 2016, 10:59 1

48. ZetZet (Posts: 22; Member since: 21 Apr 2015)


but samsung phones also drop in price over a year period since their release once sales cover marketing costs and stuff, apple doesn't.

posted on 14 Mar 2016, 11:00 1

50. natypes (Posts: 1104; Member since: 02 Feb 2015)


lol ok I'm sorry you don't get it. I'm through with you. Keep following me around and making my day. I'll be here.

posted on 14 Mar 2016, 11:16 2

55. natypes (Posts: 1104; Member since: 02 Feb 2015)


Owned? Do you 2 sit at the same lunch table? Oh wait, you're the ignorant fuk that accused ME of being racist. lmao Kid you have no clue who I am, what I look like or anything, how could you come up with that? I'm natypes everywhere online you can find more about me if you want. You may learn not to put your foot in your mouth. You have a LOT to learn son.

He called me idiotic for saying people have a certain opinion then just stated other peoples opinions on 2 of 3 of his numbered lists (cute lol) thinking that proved that I was idiotic. If you side with that "point" you're as dumb as him.

Juvenile is all I can say.

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