It looks like we have some details on how much it costs Samsung to make their Samsung Galaxy S8 smartphone.
According to a recent report by IHS Markit, the new Samsung Galaxy S8 costs $301.60 to manufacture. This is around $43 higher than the Samsung Galaxy S7. The increase in manufacturing costs can be attributed to several factors, including the addition of new features and advancements in technology.
Breakdown of Manufacturing Costs
The higher total BOM (Bill of Materials) 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, the cost of production naturally increases. For instance, the Galaxy S8 boasts a stunning Infinity Display, which is more expensive to produce than the screens used in previous models. Additionally, the device includes advanced components such as a more powerful processor, enhanced camera systems, and improved biometric security features.
Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit, commented on this trend:
“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.”
New Features and Innovations
One of the standout features of the Galaxy S8 is its virtual assistant, Bixby. While Bixby represents a significant software innovation, it also necessitates additional hardware components to function effectively. This includes specialized microphones and sensors that contribute to the overall cost of the device. Furthermore, the Galaxy S8’s design incorporates premium materials such as Gorilla Glass 5 and an aluminum frame, which add to the manufacturing expenses.
Another factor contributing to the higher cost is the inclusion of advanced connectivity options. The Galaxy S8 supports Gigabit LTE, which requires more sophisticated and expensive modem technology. This ensures that users can enjoy faster internet speeds and better overall connectivity, but it also drives up the cost of production.
The camera system in the Galaxy S8 has also seen significant improvements. The device features a 12-megapixel rear camera with dual-pixel technology, allowing for faster autofocus and better low-light performance. The front-facing camera has been upgraded to an 8-megapixel sensor with autofocus capabilities, enhancing the quality of selfies and video calls. These camera enhancements require more advanced and costly components.
You can find out more details about how much the new Samsung Galaxy S8 costs to make at the link below.
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