LONDON–(BUSINESS WIRE)–The new Samsung Galaxy S8 equipped with 64 gigabytes (GB) of NAND flash
memory carries a bill of materials (BOM) cost that comes out to
US$301.60, much higher than for previous versions of the company’s
smartphones, according to a preliminary estimate from IHS Markit
(Nasdaq: INFO), a world leader in critical information, analytics and
After $5.90 in basic manufacturing costs are added, Samsung’s total cost
to make the Galaxy S8 rises to $307.50; the unsubsidized price for a
64GB Galaxy S8 starts at around $720. The preliminary estimated total at
this point is $43.34 higher than that of the Galaxy S7 previously
performed by IHS Markit, and is $36.29 higher than the total build cost
of the Galaxy S7 Edge, considered a better comparison to the Galaxy S8.
IHS Markit has not yet performed a teardown analysis on the larger
Galaxy S8 Plus.
“The higher total BOM costs for the Galaxy S8 seem to be part of a trend
that reflects something of an arms race in features among Apple, Samsung
and other phone manufacturers, as they all try to add new and
distinguishing hardware features,” said Andrew
Rassweiler, senior director of cost benchmarking services for IHS Markit.
“While there are new non-hardware features in the Galaxy S8, such as a
virtual assistant called Bixby, from a teardown perspective the hardware
in the Galaxy S8 and that of the forthcoming new iPhone is expected to
be very similar.”
The introduction of the Galaxy S8 comes at a delicate time for the
embattled South Korean electronics giant, which is eager to put behind
the challenges associated with the Galaxy Note 7, whose exploding
batteries prompted a worldwide recall.
The latest salvo from Samsung shows how it’s keen to regain consumer
confidence and attain leadership in the smartphone landscape, a nearly
saturated but still highly competitive space that remains key to
retaining subscriber loyalties and winning new converts.
First smartphone capable of gigabit-LTE speeds
Both the Galaxy S8 and S8 Plus feature a 10-nanometer (nm)
system-on-chip (SoC) along with CAT-16 LTE modem and radio. The CDMA
version of the S8, intended for use in the United States as well as in
China, will feature the Snapdragon 835 chipset from San Diego-based
Qualcomm. In comparison, a version of the phone featuring Samsung’s
homegrown Exynos 8895 chipset will be used for the rest of the world.
The CAT-16 LTE radio allows the new Galaxy phone to aggregate three
carriers of up to 20 megahertz each. Combined with 4×4 MIMO antennas and
higher-order modulation of 256 QAM, the LTE modem is capable of reaching