Ever wondered what Samsung’s Galaxy S8 manufacturing cost is? Well, lets find out. The Galaxy S8 which is set to officially hit the Nigerian market on the 5th of May 2017, costs about $720 – $900 (around ₦273, 600 – ₦342, 000). However this is not the actual cost Samsung incurs in the manufacture of each Galaxy S8 unit.
The question now is, how much profit does Samsung make on each unit of the Galaxy S8 sold. IHS Market gives us some guidance. According to the report, the total bill of materials (BOM) the 64GB storage variant is pegged at around $301.60, with a manufacturing cost of $5.9, the final amount comes down to about $307.50 (around ₦115, 315).
As mentioned in the report by IHS Market, this amount is the highest by far compared to previous versions. The Samsung’s Galaxy S7 and S7 edge for example were manufactured at around $264.16 (around ₦100, 380) and $271.21 (around ₦103, 060) respectively.
Although the detailed component prices of all the components were not explicitly stated, we know however that the 3,000mAh battery cost $4.50 (around ₦1710)…amazing right? Also the NAND flash memory and DRAM cost $41.50 (around ₦15,770).
Doing the math, and considering Samsung’s Galaxy S8 manufacturing cost and the selling price, can we now say that Samsung makes about $415.5 (₦157,890) in profit on every unit sold? The answer to that will be No. Reason being that there are extra expenses incurred, these include marketing costs, taxes, carrier costs, retailer costs, etc.