Samsung Galaxy S 4 manufacturing costs estimated, higher retail price

Samsung Galaxy S 4 manufacturing costs estimated, higher retail price
We saw yesterday what the retail price of the Samsung Galaxy S 4 would be at around $579, according to a sweepstakes. But, that number may not be accurate, and today we're getting some even more interesting numbers. iSuppli has done some preliminary estimates on the components of the Galaxy S 4 and what the manufacturing costs might be.

Samsung Galaxy S 4 manufacturing costs estimated, higher retail price
Apparently, after the reports circulated that the fine print on the sweepstakes put the retail value of the Galaxy S 4 at $579, Samsung has done some editing, and has changed the fine print to say the retail value of the phone is $640. Of course, the retail price is one thing, but the manufacturing costs are quite another. 

iSuppli mixed together the known components like the Exynos Octa SoC with some educated guesses on other parts and has estimated that the HSPA variant of the Galaxy S 4, with the Exynos SoC has build materials costing $236, and an $8.50 manufacturing cost, putting the phone at around $244.50 to build. The LTE variant which has the Snapdragon 600 comes out slightly cheaper with build materials costing $231, and the same manufacturing cost, putting the total at around $241.50. 

These are estimates of course, but should be pretty close to reality. And, that means that Samsung has put about a $400 markup on the phone. 

source: iSuppli and Samsung via pocketnow

Related phones

Galaxy S4
  • Display 5.0" 1080 x 1920 pixels
  • Camera 13 MP / 2 MP front
  • Processor Qualcomm Snapdragon 600, Quad-core, 1900 MHz
  • Storage 64 GB + microSDXC
  • Battery 2600 mAh(17h 3G talk time)

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49 Comments

1. lhikary

Posts: 3; Member since: Mar 18, 2013

umm samsung....wtf!!!! Now if you thought about it thats what it cost to build but we dont know how many millions of dollars are spent to create the technology, so the $400 are for them to pay for their employees and to research and develop new technology but like always the price drops after a few months and i will buy the note 3 when its around $500 if that is it can run Command & Conquer: Tiberum alliances its an HTML5 game and it lags like hell on a galaxy s3 i wanna know how it will work on a galaxy s4, HTC One and a phone with nvidia tegra 4

2. papss unregistered

Oh boy.. One step closer to being Apple

21. jsdechavez

Posts: 784; Member since: Jul 20, 2012

A lot of Samsung fans here sourgraping that their brand isn't overpricing.

22. Kal-el

Posts: 96; Member since: Dec 14, 2012

Uhhh iphone 5 costs less around 207...and average cost is 800-900 some times 1000 dollar to crazy buyers ........that's roughly 600 mark up...for an inferior 1-2 year old tech claimed as "new" that doesn't even do half of the features that this particular phone does

24. Hemlocke unregistered

That "inferior tech" smacked the S3 in every way. Why do you think Samsung only waited 9 months to release the S4? The S3 was prematurely done, and Sammy needed something to stop the bleeding. What do you think will happen when the new iPhone comes out? Hell, the S3 was outsold by the 4S in 2012, let alone what the 5 has done.

26. rusticguy

Posts: 2828; Member since: Aug 11, 2012

No it doesn't.

35. SleepingOz unregistered

WTF DID I JUST READ?!

36. SleepingOz unregistered

"That "inferior tech" smacked the S3 in every way." "Hell, the S3 was outsold by the 4S in 2012, let alone what the 5 has done." I'd like to know where did you get these BS from. You dreamt of them last night or something?

48. aahmed215

Posts: 169; Member since: Jun 18, 2012

"Hell, the S3 was outsold by the 4S in 2012" Maybe it's because the 4S has been out for much longer.

3. Meleagru

Posts: 92; Member since: Dec 03, 2012

It's still not as high as the markup that Apple has, if not for the simple reason that Samsung puts more hardware inside their phones.

5. Droiddoes unregistered

And software. And features. And options. And settings. I have no problem paying Lexus prices for Lexus features (Samsung). I have a huge problem paying Lexus price for Geo features in a Lexus body (apple)

8. Xtasy

Posts: 284; Member since: Jan 13, 2013

Ye and most of the feautures are usless gimmiky crap

16. papss unregistered

Did you just list multiple parts to software to make it seem like it cost them that much more?id rather pay for a Lexus that is feature rich and a good body.. I'm not rewarding a company that lazily designs their phones.

30. Hemlocke unregistered

What they fail to take into account are two major things: software development and economies of scale. Android is free. Samsung doesn't spend a dime developing it, nor do they pay for it. They develop the ugliest and buggiest Android skin, TouchWiz, but that's it. Google does all the heavy lifting. Economies of scale? Apple could build the S4 for less than $200. Nobody preorders and locks up components as early, as often, and in the quantities Apple does. Tim Cook is CEO because he built and maintained a peerless supply chain, and Apple has reaped the rewards. The difference in BOM and retail price between the iPhone and S3 are negligible, plus Sammy has 100 other phones on shelves and clearly outsells Apple overall. Yet Apple still manages almost 70% of mobile industry profits. That's no accident. All of their moves are focused, their entire lineup fits on a kitchen table, and nobody else approaches their level of organization and vertical integration.

34. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Apple could build the S4 cheaper? First, they don't build anything. Second, until recently a lot of the bigger iphone components were provided by Samsung. On the international model, Samsung is providing all of the major parts, SOC, screen, memory, so how the hell is Apple going to beat that when they are dependent on outside sources for building materials. It doesn't matter how far ahead they buy or how much they order, they are buying from an outside source. Samsung is using it's own stock, that's always going to be cheaper.

49. kabhijeet.16

Posts: 884; Member since: Dec 05, 2012

What is wrong with this guy?

51. Kal-el

Posts: 96; Member since: Dec 14, 2012

LOL apple and "BUILDING SAMSUNG" ahahhahhaa ...it's quite the other way around for the longest time...until certain lawsuit came around...samsung built processors and ram and some cases internal storage ... internal is mostly Toshiba... ideally iphone was : LG screen, Toshiba Ram Samsung chipset, Camera lens essentially Sony Rectangle design by apple....claims lawsuit.... don't believe mehttp://www.phonearena.com/news/Samsung-makes-26-of-the-iPhone-4s-components-says-infographic_id21206

11. SleepingOz unregistered

Yeah, not to forget that Samsung spends billions on R&D every year. They work, design and develop their own hardwares(Exynos, SuperAMOLED etc..).

18. Hemlocke unregistered

Exynos is a mostly stock ARM design, whereas the A6 (and Krait) are completely custom because Qualcomm and Apple have ARM architecture licenses, whereas Samsung has a regular OEM license. AMOLED screens aren't developed by Samsung, they are built to spec from Universal Display IP. Try again.

38. SleepingOz unregistered

"AMOLED screens aren't developed by Samsung, they are built to spec from Universal Display IP." Who are you kidding actually? Samsung is the largest AMOLED supplier. They might have not invented the OLED technology but they are the one who have bring OLED technology where it is nowadays! They have developed the AMOLED, SuperAMOLED HD(pentile/non-pentile, trashing a football field worth of display glass in order to get it right. If that's not money spent on R&D, what it is then? ), SuperAMOLED FHD and now, Flexible AMOLED coming soon. Meanwhile, apple is busy filing stupid patents about square with rounded corners.

20. jsdechavez

Posts: 784; Member since: Jul 20, 2012

...Yeah, not to forget that Samsung spends billions on R&D every year. They work, design and develop their own hardwares(Exynos, SuperAMOLED etc..). ......AND COPY OTHERS' SOFTWARE.

27. rusticguy

Posts: 2828; Member since: Aug 11, 2012

That's Innovation which Apple has been crying out loud all these years :)

4. Angkor

Posts: 108; Member since: Jul 05, 2012

Samsung spent billions dollars a year in upgrading manufacturing plants and R&D when compared to rotten Apple has no manufacturing plants only R&D and Apple Stores.

6. Droiddoes unregistered

But appfail spends billions on patent applications and bullsh*t lawsuits, so they have the edge there.

10. Xtasy

Posts: 284; Member since: Jan 13, 2013

and yet they keep same design and a higher price tag...tisk tisk

19. Hemlocke unregistered

Samsung Mobile spent zero on upgrading plants. They are different companies, which is why Samsung has to buy components and each subsidiary reports earnings separately.

7. Taters

Posts: 6474; Member since: Jan 28, 2013

Are pocketnow and phone arena this desperate for Samsung controversy that they would post this as Samsung contradicting themselves? I work for an electronic giant and I do marketing research for them. My team and I get pressured for results in all areas, including how many people enter one of the contests we are responsible for. So when we put approximate retail value with an asterix, of course we are listing the highest possible price so that consumers think that they are entering the contest for something that is too expensive for them to buy, otherwise they would just buy it and find it easier than giving us their information or filling out a survey. It is pure marketing.

37. MichaelHeller

Posts: 2734; Member since: May 26, 2011

I can't speak for pocketnow, but there's no judgement here. We reported something yesterday, and that has changed, so we reported that as well. It happens to be info that goes well with new estimates on the cost to build. Simple as that. We're just passing along information. There's only controversy if you make one.

9. Xtasy

Posts: 284; Member since: Jan 13, 2013

Admit it guys the S3 is just a load of hype built with a ton of feautures u barely use and are inadequate and the S4 doesn't make a difference...The only thing u will be upgrading to is better resolution and 13 MP camera...Plus who needs another phone that is not one handed user friendly

14. bucky

Posts: 3774; Member since: Sep 30, 2009

agreed. Too big now. This phone would be amazing at 4.5" or even 4.3". Phones should not be cumbersome...supposed to help us get through the day easier.

* Some comments have been hidden, because they don't meet the discussions rules.

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