Why Galaxy S8 costs a lot?
According to an analysis, Samsung Galaxy S8 is the most expensive phone to produce as of now. Not only it is significantly more expensive compared to the iPhone, but also, compared to the last model.
When Samsung introduced the Galaxy S6 and Galaxy S6 EDGE, the brand’s fans wished the edge models to be separated by slightly some points than the flat-screen version. The Galaxy S6 edge, however, already had a much more complex production process than the Galaxy S6 and returned to Samsung with a less profit. Now Samsung is completely free of standard models: every model in the S8 series has a curved display which is a record for Samsung.
According to statistics published by IHS Markit, one S8 unit costs $ 307.50. There was a significant increase over last year’s $ 271.20 cost of the Galaxy S7 edge. The production cost of iPhone 7 is $ 224.80 per unit, so $ 82.70 less. According to these figures, the Samsung Galaxy S8 is now the most expensive smartphone on the market. Google Pixel is $ 285 after the S8.
Samsung has sold a $ 720 Galaxy S8 without a SIM lock in America. This corresponds to a profit margin of $ 420. But Samsung also has other costs to add to the cost of production at every sale; The free warranty process is one of them. In addition, marketing, logistics and, most importantly, research and development costs; This is a part of the list that is not included in the calculated expense.
All these costs will not be enough to smash the shoulders of an industry leader like Samsung, but it is also true that Galaxy S8 has a huge burden on sales figures to make its shareholders happy.