While Samsung's flagship smartphones come with impressive features and stylish designs, not many can afford them. Of course, the devices are targeted at a specific segment of the population, but what makes them so costly? If we compare them with Chinese smartphone manufacturers like Xioami, we can see a significant price difference between their flagship phones.
Thankfully, a report by IHS Markit has apparently answered all our questions. The report, which was published last week, has shown us the component cost of Samsung Galaxy S8. According to it, the component cost of Galaxy S8 is much higher than any of the premium smartphones around the world. Interestingly, the cost is even higher than Apple's iPhone 7.
Total BOM cost
Going by the report, the total Bill of Materials or BOM cost of Samsung Galaxy S8 is $308.
Where was the money spent
Renowned analyst Pan Jiutang believes that most of the money is spent on the display(5.8-inch AMOLED display) , chipset (Snapdragon 835), memory capacity (4GB RAM and 64GB ROM), camera setup (12 MP rear and 8MP front camera) and battery (3000mAh with fast charging support) of the phone.
The Snapdragon 835 SoC cost over $60
As per Pan's opinion, the Snapdragon 835 processor inside the S8 costs more than $60, 64/128GB UFS flash memory about $24 and $34 respectively and 4/6GB around $20 and $35 respectively.
Talking about Chinese smartphones, their key components are usually supplied externally, an exception being the Huawei's Kirin chipsets. Nonetheless, we now know why Samsung's flagship devices are so expensive.