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Samsung Galaxy S9+ & iPhone X costs around $400 to manufacture

The flagship devices from Samsung Galaxy S8+, Note 8 & S9+ has the higher cost of goods sold ( COGS ) than iPhone 8+ but lesser than iPhone X. In a test done by Tech insights where they calculated an estimation of manufacturing costs of flagship devices from Samsung & new iPhone devices revealed that these devices have COGS less than $400.

Cost Of Goods Sold

This is a rough estimation of costs of different components of the device, surprisingly iPhone 8+ costs lesser than any other device in this list. The lower price of iPhone 8+ is due to the display used in it, the IPS LCD display of iPhone 8+ costs around $47 whereas the OLED of iPhone X is around $77 & AMOLED display from Samsung are around $72-$82. The display is the prime reason for the price difference of $30-$40 between Galaxy devices & iPhone 8 Plus.

The Exynos powered Galaxy S9 Plus is close to iPhone X because of the variable aperture & telephoto lens used in S9 Plus & also volatile memory ( 6GB RAM ) costs around $39 but the 3 GB RAM of iPhone X is around $25. Because of Apple’s approach to their housings, with a heavy emphasis on machining, the non-electronics components cost around $46 when compared to that of Samsung’s $29.

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The cost of S9 Plus is understandably more than S8 plus because of lens used for Camera in S9 Plus & also the RAM, they have used ( 6 GB in S9+ & 4 GB in S8+ ). Though all these costs are rough estimates the major point of the talk is the price tag at which these flagship devices are selling which are nowhere close to these manufacturing costs. This is the area where Xiaomi & OnePlus are capitalizing on, though the performance of these devices are not close to that of these flagship devices considering the price it will definitely affect flagship device sales. For ex, Samsung S8+ & S9+ carries a price tag of almost double of OnePlus 5T & even Google Pixel devices are with high price tags.

Nexus devices are known for delivering high performance & their price tag was justified for that but these overpriced pixel devices aren’t working well for Google.

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