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Samsung Galaxy S5 costs more than the iPhone 5S and Galaxy S4 to build

Bill of materials cost is $256
Tue Apr 15 2014, 13:52

Samsung Galaxy S5 iFixit teardownSAMSUNG'S GALAXY S5, which is shown in the video below, costs more than the iPhone 5S to build with a bill of materials of $256, a teardown by IHS has revealed.

Market research firm IHS has been quick to pull the Galaxy S5 apart, revealing that the cost of the handset's parts totals an estimated $256. That's more than the Samsung Galaxy S4 bill of materials cost of $244, and makes it more expensive than the iPhone 5S too, which has a bill of materials cost of around $199.

With the Samsung Galaxy S5 retailing for around $660 in the US, this would mean the firm realises a 60 percent gross margin on each smartphone sold. As we reported earlier today, Samsung has already revealed that its latest flagship handset has sold in its "millions" since it launched across the globe last week.

According to the IHS teardown, the Galaxy S5's most expensive feature is its 5.1in HD 1080p Super AMOLED screen, which costs Samsung $63 per handset. However, that is $12 cheaper than the Galaxy S4's slighly smaller, 5in display. Thanks to Samsung's use of its own DRAM and flash memory, IHS noted that these parts combined cost the firm $33 per handset.

The Galaxy S5's fingerprint sensor apparently sets the firm back just $15 per handset, with the iPhone 5S' Touch ID sensor costing Apple $15, and the heart rate monitor on the rear of the handset estimated to cost $1.45 per handset.

Of course, while all of the components total $256, it's worth noting that IHS doesn't account for factors such as R&D, software, distribution and marketing costs.

This isn't the first time that the Samsung Galaxy S5 has been ripped apart. iFixit took the smartphone apart last week, revealing that it is harder to repair than both the iPhone 5S and the Samsung Galaxy S4. µ


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