We all use smartphones. But many people do not know the production cost of mobile. Knowing this will let you know if that mobile is reasonable for your purchase price. Display, camera, and processor play an essential role in the price of a mobile phone. Here we listed Samsung Galaxy S7 Manufacturing costs, including each significant component’s price. The final fee may vary depending on the country and location. Most of the time, Samsung mobiles are available at a low cost in the US region.
Estimated Manufacturing Price
This estimation was done with the Samsung Galaxy S7 (model SM-G9300/8/AZ/F/FD/K/L/P/R4/R6/R7/S/T/T1/U/V/VC/W8 ) meant for Asia and EMEA. This estimation is for the Exynos processor model. As for the Qualcomm model, we hope to see a teardown of its actual manufacturing cost quite soon.
From our analysis of the inner workings of the Galaxy S7, we also performed a quick cost estimate on the unit. Here, we present a few costing points of note and an overview of cost allocation on the phone.
Display Cost
Yes, Samsung Display is the best in the market. The display occupies a High cost in terms of the Components. The AMOLED Hole Punch display costs $47.00. Compared with standard displays, the cut-out Displays require 20% more.
Processor Cost
The S7 comes with Snapdragon 820 @ 14nm, the industry’s cutting-edge processor with a die size of 124 mm2. Samsung used the industry’s new Snapdragon 820 @ 14nm. This processor of Galaxy S7 costs $10.
RAM Cost
On the other hand, the display cost increased by about $9 because S7 comes in a bigger size. There is now a punch hole instead of top-notch, and it is an edge-to-edge display design. Coming to the memory pricing, the cost of memory chips dropped drastically, and as a result, Samsung added a 128GB storage chip on the Galaxy S7 instead of 64GB. Also, the RAM was increased by 4GB (LPDDR4X) at no additional cost increase. Even users of this device will get an extra 128GB microSD card out of the box as a freebie package. The cost of all these components is still under $20, added to their Supporting Material costs.
Other Components
Looking at the chart released by the guys at TechInsight, the display of the Galaxy S7 costs more than other components/features, estimated at $47.00. The memory cost is relatively high at $28.00, while the chipsets and network modems cost $40.00. There are more cameras on this device, and it costs Samsung $24.50 for all these cameras. Other costs can be seen in the chart below.
The total amount it costs Samsung to manufacture a unit of its Galaxy S7 device, which is a variant of S7, is about $243.00 (total for all included components). Many sources have it that this device will cost around $999.99, then Samsung will make up to 60% profit for each unit sold.
What more?
This is the estimated manufacturing price for the Samsung Galaxy S7. The actual amount may vary because Samsung will not reveal the actual price. The components rates can be low due to bulk Manufacturing. You can’t buy any device without additional costs. But, we spend an extra 50% on premium devices for High-Quality testing, Advertisement, and Promotion with Celebrities like that. Brands cut down this Advertisement cost and other Non-Needed costs like OnePlus, Xiaomi. That’s why you get them for a meager price.
Selva Ganesh is the Chief Editor of this blog. A Computer Science Engineer by qualification, he is an experienced Android Developer and a professional blogger with over 10 years of industry expertise. He has completed multiple courses under the Google News Initiative, further strengthening his skills in digital journalism and content accuracy. Selva also runs Android Infotech, a widely recognized platform known for providing in-depth, solution-oriented articles that help users around the globe resolve their Android-related issues.
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