The guys over at iSuppli have been calculating the costs of the new Samsung Galaxy Tab Android tablet, and it seems it costs around $205 in parts, although it probably costs a fair bit more to make when you take into account the labour and development involved in it.
The Samsung Galaxy Tab sells for around $600, so even when you take into account all the other costs, Samsung are still making a healthy profit on each one sold.
The Galaxy Tab carries a Bill of Materials (BOM) of $205.22, significantly less than iSuppli’s $264.27 estimate for the 16Gbyte 3G version of the iPad, based on the preliminary results of a dissection conducted by iSuppli’s Teardown Analysis service. However, the reduced cost is largely the result of Galaxy’s smaller and lower resolution display compared to the iPad.
Cost Breakdown and Comparison
The cost breakdown provided by iSuppli reveals that the most expensive component of the Galaxy Tab is its display, which is smaller and has a lower resolution compared to the iPad. This difference in display quality is a significant factor in the reduced BOM. The Galaxy Tab’s display costs around $57, whereas the iPad’s display is estimated to cost about $98. Other components such as the processor, memory, and battery also contribute to the overall cost, but they are relatively less expensive.
For instance, the processor in the Galaxy Tab is estimated to cost around $20, while the memory components add another $30 to the BOM. The battery, which is crucial for the device’s portability and usage time, costs approximately $15. These components, along with other smaller parts, add up to the total BOM of $205.22.
Additional Costs and Profit Margins
While the BOM gives a good indication of the material costs, it does not account for other significant expenses such as research and development (R&D), marketing, distribution, and after-sales support. R&D costs can be substantial, especially for a high-tech device like the Galaxy Tab, which requires extensive testing and quality assurance. Marketing and distribution also add to the overall cost, as companies need to promote their products and ensure they reach consumers efficiently.
Despite these additional costs, Samsung is still able to maintain a healthy profit margin. Selling the Galaxy Tab at around $600, the company makes a significant profit even after accounting for all other expenses. This profit margin is crucial for sustaining the business, funding future innovations, and providing returns to shareholders.
Head on over to iSuppli for a full list of what is inside the new Samsung Galaxy Tab. Have a look at our article on Android vs iPhone to see which smartphone and mobile platform is best for you.
via Phandroid
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
