14 DAY TRIAL // While the iPhone XS has until recently been considered a really pricey smartphone, Samsung’s recently-unveiled Galaxy S10 falls pretty much in the same category, as the S10+ model alone starts at no less than $999.
Preliminary data shows that this high price might already be affecting Samsung Galaxy S10 sales, with the number of pre-orders in the first day substantially below those of previous models.
But despite you having to cover this huge cost when buying a Galaxy S10, Samsung actually pays much less to make the device.
And according to a bill of materials published by TechInsights, the South Korean company spends only $420 on the components that are available on the Galaxy S10.
The display itself is obviously the most expensive at $86.50, followed by the processor and modem which cost $70.50. The triple-camera system on the back has a price of $56.50.
Infinity O display
Samsung Galaxy S10 comes with an all-new display called Infinity O and featuring a punch hole design for the front-facing camera, and given it’s a new technology, it makes sense to be the most expensive component.
But while at first glance it looks like Samsung is making a fortune out of every Galaxy S10 it sells, it’s important to keep in mind that this cost doesn’t include anything else beyond the actual price of the hardware used on the smartphone.
Basically, the final price of the Galaxy S10 also includes additional costs like research and development, marketing, and others, so the overall spending could actually be much higher. Of course, we’ll never know how much it costs to make a Galaxy S10 with all adjacent expenses, and it’s pretty clear that Samsung also has its very own profit margin for the model.
What’s certain is that the Galaxy S10 is quite an expensive smartphone, and it remains to be seen how big the impact on sales is going to be in the long term.