It hasn’t even been a whole month since the Galaxy S7 was announced, but it is already flooding the market. The latest Samsung device is a costly one, as it retails for around $700. Is the price justifiable for what Samsung pays for it? Well, according IHS, the components that make up the latest Galaxy device run the company $255.
If that number sounds familiar, that is about as much as Samsung paid in components on the Galaxy S5. So, while the components are dropping in price, Samsung is making more profit overall. Obviously this doesn’t include the huge marketing budget employed by the Korean company, nor software and other development.
As for as costs go, the most expensive component of the Galaxy S7 is the Qualcomm made Snapdragon 820 processor which runs $62 per chip. IHS also states that the camera module costs only $13.70, but declined to name a manufacturer. What is even more interesting is that IHS claims that after all the components are purchased, it only costs Samsung $5 to assemble the device.
So what are your thoughts on the fact that Samsung is make $400+ for each Galaxy S7 they sell? Do you think that they are ripping us off or do you think that it’s justifiable? Let us know! I sure think they could drop the price just a little bit…