Here’s how much it reportedly costs Samsung to make the Galaxy S8


  • Dimitri

    ” 3,000 mAh battery comes in at $4.50 USD ($6.08 CAD).” God I wish we could just pay that much for the battery and or replacement lol.

    This isn’t bad. Either way they buy everything in a huge bulk and then pricing is lower but charge more to the customers. It’s a known tactic that all manufacturers do.

    • Collin dubya

      you can if you are ordering them in the hundreds of thousands.

    • Dimitri

      Oh i know. That’s why in my post i said ” they buy then in bulk”. Unfortunately I wouldn’t need thousands of them anyways.

    • h2oflyer

      Unbelievable…The manufacturing cost of $5.90 USD is almost the same as battery cost of $4.50 USD.

      Hey Trump… Let’s bring some of these manufacturing jobs back to the US and see how much a phone would cost.

    • Goran Mihajlović

      Apple pays like 10 USD to build an Iphone. Foxconn pay for assembly workers averages 2.50USD per hour. If you pay 10 USD per hour in the US, that’s like 40 bucks. Apple could easily eat that with their high profit margins. Or they could pass it down like douches to keep the same percentage. Either way, not a lot. Or they could pick a 7.25USD state and it’s like 28 bucks.

    • h2oflyer

      Unfortunately you would have to pay workers insurance premiums and build an environment friendly plant that wouldn’t discharge toxic waste into the air and drains.

    • Goran Mihajlović

      Which is maybe a few percent of the salary, especially in the right to work states apple would probably pick. And it’s not that expensive to go environmental, it just so happens that the cost of the fines is less than the cost of meeting China’s environmental regulations (yes they exist) so the cost differential is also smaller than st first glance for that reason.

    • Cornfed710

      You’re not taking into account that all most of Foxconns suppliers are in Asia, so it would add costs there also.

    • Goran Mihajlović

      Not a whole lot. In RIM’s zenith, it cost all of 20 dollars more to make the first storm than the iPhone 3g at launch. And that was because it cost more then to do a combined CDMA / GSM phone and the screen. and yes the hardware was on par or better. RIM paid assembly line workers 12 dollars a hour in Waterloo then IIRC from friends that worked there. Even if I remember wrong and it was minimum wage, it was 8.75/9.50 a hour 2008/2009, and it cost 16 dollars to manufacture.

      It really isn’t that much more expensive go build here, it just happens to be cheap enough elsewhere to give a noticeable raise in profit margins.

  • gommer strike

    So now you guys can appreciate how very little a company like Oneplus makes per phone. It works out to a few dollars of profit.

    See it’s like, you guys revere Oneplus because of their low prices and razor-thin margins like it’s a high-tech charity or something. But companies need to make money.

    • Sak Hus

      And how much marketing oneplus does? How about supplying at worldwide level with offices i/ serivce centers in 100s of cities across the world? IF you’re comparing with one plus then look at even unknown chinese brands at even half the cost of one plus but with similar design and specs.. So they’re even making less margins since their overheads are much less.

    • gommer strike

      Their margins are razor-thin. Don’t take my word for it – ask Carl Pei directly. And they have to be, given they have little-to-no marketing budget, and their support staff is likewise miniscule(just ask anyone here who’s had to deal with OnePlus support).

      Hey It’s great what they’re doing and admirable in some ways, but at the end of the day, a business is a business, and exists to make money.

      I don’t see OnePlus as necessarily a direct competitor to Samsung or Apple for that matter. No, their more immediate concern is the other bigger Chinese brands in their native soil. Xiaomi, Huawei to name just a few.

  • Ipse

    The BOM for iPhone 7 (not the Plus) is 220USD – but that’s with 32GB flash and only 2GB DRAM. Still…it looks like Apple manages to squeeze their suppliers even more than Sammy.

    • Brad Fortin

      Never take reports like these at face value. The estimates are often wildly off.

  • hardy83

    Yeah but how much do they make off each phone. It’s not counting R&D, Marketing, Shipping etc.
    Would be interesting to know how much their profit mark up actually is.

    • Goran Mihajlović

      Pretty damn good given their profit margins.

    • Jason

      RnD is usually $1million to $10million depending if its just a newer phone vs when we went from LCD to AMOLED. Shipping from China/Korea to North America is usually a few thousand. Shipping from NA to the stores is usually under contract for $50,000/year. Packaging and other parts is usually $2-$5. Advertising us usually $10million. as a reference (I couldn’t find total year numbers) but in Q4 alone Samsung sold 90 million phones.

    • monkeymo

      How did you get $10M for marketing…… Samsung as a whole spent $10B yes BILLION last year in marketing. Their mobile phones division makes up about 66% of all their profits. So do the math…….

  • Robby

    Samsung are absolute scam artists. The “promo” VR headset had to be redeemed before getting the device, unlike the Note 7 promo. No in store communication, no pamphlet or anything stating this unless I google it (which I did today, the delivery date). I logged in today to register my device as with the Note 7 and Surprise! I’m a day late. So many Note 7 owners will be screwed over by this. Good job burning your clients twice Samsung. I’m done with you.

    • heynow00

      I got a text message and email regarding from Rogers letting me know to preregister which was nice.

      The messages actually said even though the Samsung page says April 20 that it is open until April 23. I would still do the pre register if I were you!

    • Robby

      I did already, but thanks for the info! I’m still quite upset at the horrible customer service. They WILL be burning many pre-order clients with this. I spoke to Videotron store rep just now and they STILL thought I needed the IMEI post sale to register… She will try to get me a headset in store to make up for this. Either way, the fail in communication here is pretty bad.