IHS: material costs of the Galaxy S8 increase compared to S7 edge significantly

Samsung is not only more expensive than the Galaxy S7 Galaxy S8, also its material costs exceed those of previous generation clear. According to a analysis by IHS Markit pays Samsung 301,60 dollars, for the components of its new flagship model which represents a plus of 43,34 dollars. Comparing the S8 with the S7 edge, which also features in contrast to the S7 a laterally curved display, the impact is still $36,29. The researchers have not calculated yet the Galaxy S8 +.

 Galaxy S8 (image: Samsung) “The higher material costs seem to be a trend that reflects a kind of arms race between Apple, Samsung and other manufacturers, who are all trying to add new and unique hardware features”, is Andrew Rabiatul, Senior Director of the Division of cost benchmarking services at IHS Markit , quoted in a press release. “Although there are new non-hardware features in the Galaxy S8 as the virtual assistant of Bixby, we assume that the Galaxy S8 and the upcoming iPhone from hardware point of view very are similar.”

IHS is one of the major innovations that in 10-nanometer process manufactured system-on-a-chip of the Galaxy S8 and the CAT-16-LTE modem. The latter allow the device together with four MIMO antennas to achieve a transfer rate of theoretically up to one Gigabit. “Gigabit LTE probably is the key specification for flagship smartphones in the year 2017”, added Wayne Lam, senior analyst for Smartphone electronics at IHS. In practice, the transfer rate is of course dependent on the possibilities of the mobile radio network.

the most expensive component however is not the SoC that 8895 with 45 dollars charged to the calculation in the case of Samsung Exynos, but the frameless “Infinity” display with touch screen. It costs $85, which have brought Samsung but also the title “ best smartphone display of ever “. Together display and SoC are responsible for 43 percent of the total material costs.

41.50 dollars determined the market researchers for the point of “Memory”, composed major NAND Flash mass storage of the S8 4 GB DRAM and 64 GByte. The camera module to Samsung shop for 20.50 dollars, the housing frame for 22.50 dollars. The back glass cover from Gorilla glass 5 will cost only 5.70 dollars. Also the 3000 mAh battery, which is listed with 4.50 dollars is one of the cheaper components.

the contents of the retail box is comparatively cheap. IHS expects $15 charger and with the brand of AKG headphones provide the. The cost of assembling the individual components should be finally at 5.90 dollars, resulting in production costs totaling $307,50. Among other things, expenditure on research, development, software, and marketing were not included as always.


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