Galaxy S7 Parts Cost $255, IHS Reveals - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
3/14/2016
01:06 PM
Eric Zeman
Eric Zeman
Commentary
50%
50%

Galaxy S7 Parts Cost $255, IHS Reveals

Samsung's metal-and-glass Galaxy S7 smartphone costs as much to build as the plastic Galaxy S5 did back in 2014, according to research firm IHS.

10 Startups Aiming To Change The Way You Work
10 Startups Aiming To Change The Way You Work
(Click image for larger view and slideshow.)

Adding together the price of the individual components shows the Samsung Galaxy S7 costs about $255 in raw parts. That number doesn't account for research, development, shipping, or marketing, but demonstrates how Samsung's supply chain expenses fluctuate year-over-year.

The Galaxy S7 is closely related to last year's Galaxy S6 in that both share a metal frame and glass panels. Inside, the devices are dramatically different. Research firm IHS took the Galaxy S7 apart to determine how much Samsung is spending to make each phone and found some surprises inside.

Typically, the priciest component of any device is the display. That's not the case with the Galaxy S7. Instead, the Qualcomm Snapdragon 820 processor bears the highest price tag, at $62 -- almost one-quarter of the total cost. The 820 is a system-on-a-chip that includes the CPU and GPU, along with a dedicated image signal processor and LTE radio. IHS didn't say if the $62 price includes all these components, or just the processor cores.

(Image: Samsung)

(Image: Samsung)

Samsung used its own Exynos processor for last year's Galaxy S6 handset. Paired together with the baseband radio, the Exynos cost $44.50, significantly less than the Snapdragon 820.

The only other individual part IHS assigned a cost to for the Galaxy S7 is the camera module, which comes in at $13.70. Sony is the most likely manufacturer of the 12-megapixel sensor, though Samsung is making some of the sensors, too. The S7's camera costs significantly less than the $18.50 sensor found in the S6.

The cost of the S7's screen is probably in line with that of the S6's screen, since both have the same measurements and resolution. The display of the S6 was estimated to cost about $55, so we can assume the display of the S7 bears a similar price tag.

Looking at the whole picture, the Galaxy S7 is less expensive to manufacture at $255 than the Galaxy S6 at $275, but is about the same as the Galaxy S5 at $256.

The Galaxy S7 sells for $670, or about $415 more than the cost to build. Samsung spends a lot of cash on marketing, and you can be sure a huge chunk of that $415 is eaten up by advertisements.

Are you prepared for a new world of enterprise mobility? Attend the Wireless & Mobility Track at Interop Las Vegas, May 2-6. Register now!

IHS has not yet broken down the cost of the larger Galaxy S7 Edge. Given the bigger phone's dual-curved screen, the display is likely to eclipse the Snapdragon 820 as the costliest single component.

Apple's iPhones, in comparison, cost a bit less to manufacture even though Apple sells them in a similar price range.

The 16-GB iPhone 6s, for example, costs Apple $215 in raw parts, according to IHS's breakdown. The 64-GB model costs a bit more at $234. Apple's A9 processor accounts for $25 of the total price tag. The 2014-era iPhone 6 cost just $206 in parts. Consumers pay Apple $649 for the least-expensive iPhone.

Samsung did not comment on IHS's initial breakdown of Galaxy S7 component costs.

Eric is a freelance writer for InformationWeek specializing in mobile technologies. View Full Bio
We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
News
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
Slideshows
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
White Papers
Register for InformationWeek Newsletters
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
Video
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
Slideshows
Flash Poll