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Samsung’s Galaxy S8 flagship cost the company a whole lot more to manufacture, than its predcessors

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According to market reports, the Samsung Galaxy S8 cost a whole lot more to make than its predecessor. I mean we already knew that it was going to come at a premium price for the customers. What we didn’t know, was that it may have cost Samsung more than any of the previous iterations in the Galaxy series.

Speaking on the topic, Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit said:

The high costs reflect “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.

Well, an arms race would be about the right word. We have long transcended the point wherein the number of MegaPixels on our camera or, the battery capacity was the defining factor. What we are looking at now, is a new era of competition where the internal hardware, the processors, the GPU, are much more important.

Samsung’s Galaxy S8 is going to be very important for it, considering that it will be the company’s first flagship after the Note 7 fiasco and the South Korean manufacturer is eager to reclaim its image. The S8 will be competing against the likes of LG G6, Huawei’s P10 and of course, Apple’s very own iPhone 8. As such, the company has not scrimped on either the parts, or the profit margins and has done its best to ensure that the device that leaves its assembly lines, is a feat of technology.

Also, while the device is theoretically capable of reaching speeds of 1 Gbps, the on-ground speeds are likely to be much slower and be limited by the capabilities of mobile carriers.

According to estimates from the IHS Markit, the total cost of manufacturing the Galaxy S8 stood at around $307.50. The device is going for sale at above $700. According to the IHS, the total cost of manufacture is $43.34 higher than the S7 and $36.29 higher than that of the S7 Edge. None of this seem to be stopping consumers though, who are falling over themselves in ordering the S8 — if data fromSamsung is to be believed that is. The company said last week that, demand for the S8 beat expectations and orders exceeded those of the S7.

A bibliophile and a business enthusiast.

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