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S5 costs 28% more to build than iPhone 5S (RCR Mobile Minute)

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Samsung’s Galaxy S5 will cost customers the same $200 that they’d pay for an iPhone 5S on contract, but the cost of making the S5 is higher than the iPhone’s manufacturing cost. According to the teardown experts at IHS iSuppli, it costs Samsung $256 to build each Galaxy S5, while Apple spends $199 to build a 5s. The S5’s most expensive component is its 5.1-inch display, which is 25% larger than the iPhone’s screen. Apple is expected to launch a large-screen phone of its own this year, although analysts do not expect the iPhone to go all the way to 5 inches. Samsung pays an estimated $63 for each screen, while Apple pays $41, according to IHS iSuppli. Both companies are spending more on the displays than on any other component in their high-end phones.

 

ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.