Samsung recently unveiled its long-awaited fourth addition to the ‘Galaxy S’ family, predictably named the Galaxy S4. The device directly competes with Apple’s not-so-new iPhone 5, but how much profit will Samsung make from it? Well, that should be easily calculable, as we already know how much each Galaxy S4 costs Samsung to build.
IHS Suppli came up with the figures for cost to Samsung for a 16GB Samsung Galaxy S4, and estimated that, at $244 apiece, the device’s components are 17% more expensive than a 16GB iPhone 5. However, that’s expected, as even as a die-hard Apple fan, I can admit that the S4 is packed with far more up to date technology, with 2GB RAM, 12 megapixel camera sensor and even an octo-core processor. Of course, this is the cost of the hardware alone, without R&D, advertising and other costs to Samsung.
Vincent Leung, IHS senior analyst put the higher build cost down to the Galaxy S4’s “larger, full-definition display and a beefed-up Samsung processor,”. The display in question has a pretty incredible 1,920-1,080 resolution, giving it a crazy 441 ppi, compared to the iPhone 5’s 326ppi.
Samsung’s latest flagship is to hit shelves in April, and a price hasn’t been announced yet. This begs an interesting question, as Samsung has the option to give the Galaxy S4 a higher price than the iPhone 5, thus making more profit per device but risk losing customers, or match the iPhone’s price and sell more devices, so what will the company do?
What do you think about the Galaxy S4 compared to the iPhone 5? Would its specs be enough to make you switch from iOS, given that the price point is the same? Let us know in the comments.