Smartphone Manufacturing Costs
Samsung's Galaxy S8 Is Expensive to Build
Samsung’s new flagship smartphone, the Galaxy S8, goes on sale in several countries including the U.S. today. The unsubsidized price for the premium phone starts at $720, but according to estimates by IHS Markit, it is Samsung that really pays the premium.
IHS regularly takes apart smartphones to figure out the price of their parts and ultimately give an estimate of the devices’ immediate production costs (excluding indirect costs such as marketing, R&D etc.). According to the company’s latest findings, the Galaxy S8 is particularly expensive to build compared to competing devices.
At $307.50, Samsung’s new flagship phone exceeds the production costs of Apple’s iPhone 7 ($224.80) by more than 35 percent and is $50 more expensive to build than its predecessor, the Galaxy S7. According to IHS’s Andrew Rassweiler, the increase in production costs of smartphones is the consequence of an arms race between Samsung , Apple and other manufacturers, who all try to one-up each other in the increasingly uniform premium smartphone segment.
- iPhone 7 (32 GB) manufacturing costs 2016, by componentiPhone 7 (32 GB) manufacturing costs 2016, by component
- Google Pixel XL manufacturing costs 2016, by componentGoogle Pixel XL manufacturing costs 2016, by component
- Manufacturing costs in pharmaceutical industry compared to U.S. 2015Manufacturing costs in pharmaceutical industry compared to U.S. 2015
- China: mobile phone subscriptions by month February 2016China: mobile phone subscriptions by month February 2016
- IT devices total worldwide spending 2014-2021IT devices total worldwide spending 2014-2021
- Internet usage time in the United States 2010-2016Internet usage time in the United States 2010-2016
- Global smartphone shipments forecast 2010-2021Global smartphone shipments forecast 2010-2021
- Global smartphone sales to end users 2007-2016Global smartphone sales to end users 2007-2016
- Who may use the "Chart of the Day"?
- The Statista "Chart of the Day", made available under the Creative Commons License CC BY-ND 3.0, may be used and displayed without charge by all commercial and non-commercial websites. Use is, however, only permitted with proper attribution to Statista. When publishing one of these graphics, please include a backlink to the respective infographic URL.
- Which topics are covered by the "Chart of the Day"?
- The Statista "Chart of the Day" currently focuses on two sectors: "Media and Technology", updated daily and featuring the latest statistics from the media, internet, telecommunications and consumer electronics industries; and "Economy and Society", which current data from the United States and around the world relating to economic and political issues as well as sports and entertainment.
- Can Statista create customized charts?
Absolutely! For information on tailor-made and sector-specific
Charts of the Day, please contact Robin Hüdepohl