The 32GB version of the Samsung Galaxy S4 smartphone costs $237 to build, according to research firm IHS.
The Galaxy S4 is just below the cost structure of the larger Galaxy Note tablet thanks in large part to Samsung sourcing many of its own device parts. The Samsung Galaxy Note costs $270 per production unit.
According to IHS analyst Vincent Leung:
“Samsung’s strength is this ability to in-source to itself. They just keep adding to the list of components that they can supply to themselves.”
IHS breaks down the cost structure for each component in the device. The Galaxy S4 international division includes the Samsung-produced Exynos 5 Octa processor, which costs $28 per chipset. The US version on the other hand uses a Qualcomm-provided Snapdragon processor which is $8 cheaper at $20 per unit.
The US versions of the Samsung Galaxy S4 also include a Fujitsu image processor that adds an additional $1.50 to the cost of each device.
Samsung adds another $75 to the cost of each Galaxy S4 thanks to its higher-end display and touchscreen setup.
Throw in 16GB more than the lower end option and another $28 is added into the mix.
Other costs associated with the Samsung Galaxy S4 included Corning for the Gorilla Glass display cover, Broadcom with Bluetooth and Wi-Fi, a Maxim power management chip, and Triquint Semiconductor.
The IHS will release a full teardown report for the Samsung Galaxy S4 on May 9.
While Samsung may be spending $237 per smartphone, the company receives more than 100 percent margin on each device sold to wireless carriers.
Will you be picking up the Samsung Galaxy S4 on contract at a lower price or off contract with a cost that is double the production value?