In a surprising twist, the Samsung Galaxy S7 costs about the same to make as the Galaxy S5 from two years ago. That total price is a surprisingly low $255 dollars. Please keep in mind that this price is only for the total cost for actual physical parts. It is not reflective of Samsung's costs for software, labor, marketing and R&D.
What's most impressive about this is that Samsung was actually able to dial back their costs from the Samsung Galaxy S6 bill of materials. The most expensive part in the new Galaxy S7 is the Qualcomm Snapdragon 820. It actually accounts for almost a quarter of the total bill at $62. The fancy new camera in the Galaxy S7 apparently costs $13.70.
It's tough to predict just how much all of the other costs associated with the build and development of the Galaxy S7 might add on to the total; however, even if you guesstimate liberally and double the total cost of materials to account for those non-physical costs, that suggests Samsung is making around $150 per device in profit, ($255 x2 = $510; $670 - $510 = $160). That's not too shabby considering how many millions of these devices Samsung is likely to sell. What do you folks think?
Here's our dedicated Samsung Galaxy S7 section for further discussion: Samsung Galaxy S7 & S7 Edge
Source: Re/code
