Reviews of the recently released Samsung Galaxy S8 and S8 Plus have mostly been positive. It seems as the tech giant did everything it could to keep their flagship on top and the best among its competitors. According to the latest report by analytics and solutions company IHS Markit, Galaxy S8 comes with a bill of materials (BOM) cost that is much higher than it was for previous versions of the company’s smartphones.
As per the report, the 64 GB storage variant on Samsung Galaxy S8 has a BOM – bill of materials – cost of $301.60 ( Rs. 19,400). Additionally, adding $5.90 (roughly Rs. 380) in basic manufacturing costs the final cost of manufacturing device reaches $307.50 (roughly Rs. 19,800). The Galaxy S8 is selling in the US at $750 and in India its price Rs. 57,900.
“The preliminary estimated total at this point is $43.34 (roughly Rs. 2,800) higher than that of the Galaxy S7 previously performed by IHS Markit, and is $36.29 (roughly Rs. 2,300) higher than the total build cost of the Galaxy S7 Edge, considered a better comparison to the Galaxy S8,” IHS Markit said in its release. Therefore according to the report, the manufacturing cost of Galaxy S8 is 20 percent more than its predecessor. A teardown analysis of Samsung Galaxy S8 Plus has not been performed yet but it will likely be more than that of Samsung Galaxy S8.
Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit, said that the increase in BOM of Samsung Galaxy S8 is an indication of the ongoing trend where smartphone manufacturers such as Apple and Samsung put in the best of the hardware available on their products to compete with all the other products in the market.
“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,” Rassweiler added.