The Samsung Galaxy S7 bill of materials calculated at $255

14 March, 2016
The Snapdragon 820 chipset is the most expensive part at $62. The BOM doesn't include R&D, software development, marketing and distribution.

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  • Logic Fairy
  • XMF
  • 15 Mar 2016

AnonD-500788, 15 Mar 2016To be brief, if xiaomi can produce a flagship phone at a ve... moreSamsung spent over $14 BILLION in R&D for last year alone! Which is much more that an entire Chinese company like Xiaomi is worth! Add to that the cost of labors, employees all over the world, distribution, service and warranty, and you'll understand why their flagships are considerably more expensive that the Chinese phones.

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    • AnonD-500788
    • Nuf
    • 15 Mar 2016

    To be brief, if xiaomi can produce a flagship phone at a very affordable rate then i don't see why these big can't considering most phone are made in China, for other costs, i don't think it still amounts to 450$ for a single phone and these phones sell by the millions, yet one sells at 300-400$ the other sells 700-800 dollars, and you tell me its bcus of marketing and r&d for a single device, thats utter nonsense cus every company has a marketing and r&d department, it's just that some spend more but believe me it is and cannot be to the tune of 450$ per device. It's obvious someone sh!!tting on the other. For me i'll stick with low price for quality.

      Reiki, 14 Mar 2016Oh, the kiddos bashing again... Guys, try to read and thin... moreDon't be bother with the flock of low class minded people here. Many of them haven't received proper 'real world' education. Think don't know how the real world runs unlike us adults here. That is merely material price. The same way you buy a flight ticket, they never include the insurance and taxes prices in it to make it appear cheaper. $90(seat price only) flight can shoot up to $200 in final pricing. Not a rip off but it does play with your mind a little. Get used to it people!

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        • AnonD-81014
        • pr4
        • 15 Mar 2016

        P, 14 Mar 2016Ugh, articles like these are a bit difficult for people lik... more"it doesn't just invest in advertising to make its consumer basis brainwashed enough to claim it is premium (like apple)..."
        Yeah, but Apple didn't invest in brainwash so much like Samsung did :P http://www.forbes.com/sites/adamhartung/2013/04/04/how-samsung-changed-the-game-on-apple/#385b17b95fca

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          • AnonD-385537
          • Pb6
          • 14 Mar 2016

          People may think the s7 is a rip of because of the material prices but i honestly what dont think so. What everything else before selling the phone like multi million dollar celebrity endorsements and advertising? What about taxes? What about subsidizing because obviously samsung will have to give retailers a wholesale price.you still think these are over priced? You want to see overpriced products, check pharmaceuticals. Lol.

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            • Anonymous
            • MkX
            • 14 Mar 2016

            AnonD-55752, 14 Mar 2016I don't need to a website to tell me how much they cost. Th... morelow end? so what are high end for you then? they cost cheap because they were mass produced. okay. let's say I give you $225, will you assemble the phone along with the all software and whatnots? stu**d

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              • AnonD-387177
              • ssr
              • 14 Mar 2016

              Reiki, 14 Mar 2016Oh, the kiddos bashing again... Guys, try to read and thin... moreThey just dont understand that.

              It is easy for china which has international shipping for free. Also Xiaomi, Huawei, Zte, Htc, Meizu etc. all come from cheap China. CHina standards are not that low. Every other country has higher prices than China. No wonder that manfacturing process is much more expensive with Sammy or LG or Iphone. It is true...20% of whole price is brand itself. But...Look. Huawei mate 8 aint that cheap as well. Difference between S7 and Xiaomi in my country would be like 100 eur max. If article says that out of 680 eur 255 eur is taken by parts alone...that doesnt mean that company has 400 eur of profit. Workers in Samsung are paid more than Xiaomi or Huawei...and that alone is one thing. Campaign's are also paid with this money...

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                • AnonD-5197
                • QDj
                • 14 Mar 2016

                AnonD-506601, 14 Mar 2016Xiaomi uses Foxconn to manufacture their products just like... moreI'm not sure if you noticed the word "probably" in my comment. To be honest, I don't know how XiaoMi does it. It's definitely not "clear" what their business plan is otherwise there would be a few more "XiaoMi"s. Think about it. Say their phones material cost is around $200 and they're selling their phones for around $300. That kind of margin is very difficult to maintain when you consider other costs. So tell me, enlighten me on their business plan.

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                  • AnonD-491921
                  • uum
                  • 14 Mar 2016

                  AnonD-55752, 14 Mar 2016I don't need to a website to tell me how much they cost. Th... moreI would have gone with galaxy S7 Edge,if not for their sketchy update plans.They release update for Developed countries faster and make people from developing countries wait almost a year for the update.My galaxy S5 got its last update(5.0.0) almost a year ago.and my galaxy S6 got an update last september and this january(Both are 5.1.1).BTW all the CARRIER LOCKED version of both phones got Next major update.The 5.1.1 for S5 and 6.0.1 for S6.I feel cheated by samsung.Most of my friends with Chinese smartphones are getting Updates and i regret paying a lot of money for these Galaxy Flagships

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                    • Anonymous
                    • mh{
                    • 14 Mar 2016

                    useless topic

                      • b
                      • b0ne
                      • Smf
                      • 14 Mar 2016

                      AnonD-508542, 14 Mar 2016well atleast this one is done or undone...for all those fan... morethe aijphoney costs less to make because faPple buys millions of parts at once so they get a better deal

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                        • AnonD-263286
                        • 04V
                        • 14 Mar 2016

                        Apple takes 94% of global smartphone profits. Samsung only 11% !

                        http://www.ibtimes.co.uk/apple-takes-94-global-smartphone-profits-1529097

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                          • AnonD-506601
                          • gmy
                          • 14 Mar 2016

                          AnonD-5197, 14 Mar 2016Adding on to that, XiaoMi probably follows different standa... moreXiaomi uses Foxconn to manufacture their products just like every other OEM. How you can claim "different" fiar wages/conditions is beyond me.

                          It's pretty clear they take less profit from every phone and monetize through services instead to make up for the loss. You don't see seem to understand their business plan.

                            • ?
                            • Anonymous
                            • jeb
                            • 14 Mar 2016

                            AnonD-55752, 14 Mar 2016Vs. the iTrash 6s that costs $60, lelI am pretty sure iTrash 6S Plus costs only about one or two cents, since it is literally trash.

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                              • AnonD-55752
                              • mxR
                              • 14 Mar 2016

                              AnonD-491921, 14 Mar 2016I want to know it too.I don't need to a website to tell me how much they cost. The low end hardware is more than enough proof for me :)

                                I don't understand, where is the cost of display?

                                  • ?
                                  • Anonymous
                                  • Let
                                  • 14 Mar 2016

                                  Anonymous, 14 Mar 2016You mean $245 (for the 64GB model 6S) source: http://www.te... moreHahaha
                                  U r wrong brother in R&D samsung is number 1 in that department
                                  & it nearly cost them 13billion usd
                                  http://www.phonearena.com/news/Report-Samsung-is-the-second-biggest-R-D-spender-in-the-world-for-2014-Apple-not-in-Top-20_id63443

                                    • D
                                    • AnonD-473257
                                    • wrk
                                    • 14 Mar 2016

                                    Fate of the leader, testing, digging, comparing, commenting on everything
                                    Just enjoying, do not take it serious, ✌

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                                      • Reiki
                                      • 9LA
                                      • 14 Mar 2016

                                      Oh, the kiddos bashing again...
                                      Guys, try to read and think a little bit. That's only the materials cost... you need to add research and development, shipping, their taxes, money spent on certifications, permissions, adversiting, agreements, staff salary, etc.

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                                        • AnonD-5197
                                        • QDj
                                        • 14 Mar 2016

                                        Anonymous, 14 Mar 2016I guess it'll be similar too. But Xiaomi takes less profit ... moreAdding on to that, XiaoMi probably follows different standards when it comes to fair working wages/conditions of their employees than the western and Asia-other-than-China companies. If not for their own employees, then where they get their supplies from.