Samsungs Galaxy S5 Costs About $256 to Build

Discussion in 'Frontpage news' started by Hilbert Hagedoorn, Apr 18, 2014.

  1. thatguy91

    thatguy91 Guest

    The cost to build is $256, but then you have shipping costs, wholesaler costs, retailer costs, transportation between wholesaler and retailer, maybe importer costs, tax, and so on. If it costs you $600, Samsung certainly isn't getting a $344 profit. Not sure how much they're get, but it would only be a small fraction of that $344.

    Apple would make much more money on their iPhones, since they are notorious for cheap labour, sub-par working conditions, and they control the supply chain from manufacturer to their stores. If they sell the iPhone for $600, they would be getting the bulk of that $400 difference.

    Apple also pay little tax, notoriously so. It's way past the point of being disgusting.
     
  2. shoja

    shoja Guest

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    Got this phone over the new HTC One (M8) mainly due to the weak camera HTC has. I am loving it. It has minor updates to it, but they (especially the amazing camera and being waterproof) can be noticed as you continue using the phone.
     
  3. Redemption80

    Redemption80 Guest

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    While Apple clearly make more profit per phone, i don't think it's anywhere near like what people think.

    Samsung are involved in just as much cheap labour as Apple is, and while their margins are not as high as Apple's they nothing more than a slightly less annoying version of Apple when it comes to profits and selling phones via marketing rather than anything real.

    These days i'm more of an HTC fan, build quality and software is so much better on the One M8, i've even heard the camera seems to be better all round than the S5, not surprising as most of us know the megapixels amount is just there to sell cameras to people who know nothing about cameras, and only becomes important if you need to zoom or crop the image.
     
    Last edited: Apr 18, 2014
  4. Neo Cyrus

    Neo Cyrus Ancient Guru

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    Mine on a 2 year contract cost... $621.50 before $195 credit I had with my provider reducing it to $426.50. Of course they also wanted to charge an extra $25 "upgrade" fee, which I had them drop. Why? Because my contract doesn't cost $80 a month. That's pretty much how all of them here work. On an $80 a month contract for 2 year it'd be $282.50. $339 difference. But that's nearly $900 less per year for my contract.

    Only reason I would pay such an insane price on a 2 year contract is because that phone number (of the 3 on the account) wasn't leaving that provider so signing up for the contract actually didn't make me lose anything. $426 ends up being less than then 32GB Nexus 5 I wanted which was marked as "In sock ships in 5 weeks".

    I guess the moral of the story is that if you're in Canada prepare to be raped on phones and contract prices. Best part about all this is, I'm still waiting for my S5 to arrive even though it should have a week ago. According to their website I'm still #65 in line on the reserve list. Classy.

    Oh and I really don't believe it costs $256. I'd be anything each unit ends up costing Samsung significantly less.
     
    Last edited: Apr 18, 2014

  5. buddybd

    buddybd Master Guru

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  6. Clouseau

    Clouseau Ancient Guru

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    The $256 build cost is right in the ball park. Manufacturers usually want at least one full turn on their cost. That now elevates the price to $512. Giving a conservative markup of 25%, brings the price to $640. Not shocking at all.
     
  7. zzzaac

    zzzaac Guest

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    Having got the M8 and do a comparison, the camera on the M8 is better than the S5 at Low Light, I found that the S5 is the best all rounder out of the two.

    The M8's camera is just too inconsistent, something that the Verge and Cnet mentions
     
  8. lucidus

    lucidus Ancient Guru

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    Don't be that guy. Oh, sorry.
     
  9. IcE

    IcE Don Snow

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    Nope, perfectly reasonable. The people who designed, engineered, and marketed the phone deserved to be paid for obvious reasons.
     
  10. NAMEk

    NAMEk Guest

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    I doubt they do. Usually most of the profit goes to few people who are chairmen or directors or any one in the top. Btw profit is huuuge. Don't stand up for samsung, they aren't worth it.
     

  11. Loobyluggs

    Loobyluggs Ancient Guru

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    Not seeing a problem with this, they did have a large legal bill to pay Apple for IP infringement, unless I got that wrong?
     
  12. Kaarme

    Kaarme Ancient Guru

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    Whatever the warranty return percentage of the phone might end up being, it will also reduce the profit somewhat per phone. Ironically enough the cheaper the components and assembly and thus the larger the margin, the more it will cost in warranty expenses. Although I'm sure all phone makers are experts at optimising a phone's quality so that it will statistically break only after the warranty has just expired. Good for business.
     
  13. makaveli316

    makaveli316 Guest

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    Wow, you guys in the U.S. are really f'd up. 100$+ for a plan?
    Seriously, this is beyond getting it in the butt.
    I'm getting the S5 next week for 45€ a month with everything included, free calls + sms to anyone, LTE 4G 2Gb and 300mb roaming data.
     
  14. eclap

    eclap Banned

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    You sure that's on the same length contract as that $100 contract?
     
  15. IcE

    IcE Don Snow

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    So you imply they're working for free? :3eyes: They're part of the overhead of running a business, not an optional expense..
     

  16. Denial

    Denial Ancient Guru

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    No, there are plenty of contracts that are sub $100. I pay $70 for unlimited everything.
     
  17. FerCam™

    FerCam™ Guest

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    And you still believe in santa and everything they say, a tip: like someone already said in this thread samsung is a vertical manufacturer they can supply themselves. And for me it's the same don't like smartphones I have a PC for something just need something that makes phone calls. Besides that it's mostly rich people who buys them to show-off, so samsung should "scam" them even more.
     
  18. yasamoka

    yasamoka Ancient Guru

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    Funny stuff, really. Pity you have to label others because you don't have a smartphone and they do, then top it all off by wishing they be "scammed" by a company making money.

    It's funny that a minority in a minority of hardware & gaming enthusiasts, with the specs you have, is labelling the hundreds of millions of people who own smartphones "rich people who buy them to show-off".

    What part of your body did you pull the $100 figure out of, exactly? You also don't seem to have anything useful to add except ride on the hatewagon? Next stop is not too far.
     
    Last edited: Apr 20, 2014
  19. Clouseau

    Clouseau Ancient Guru

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    Last edited: Apr 20, 2014
  20. Clouseau

    Clouseau Ancient Guru

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