iSuppli: Samsung Galaxy Tab packs $205 in materials, $215 to manufacture

By on Nov 2, 2010 at 8:09 AM
Tablets November 2, 2010

Here’s a head-scratcher: analytics company iSuppli has completed its analysis of Samsung’s GT-P1000 Galaxy Tab, and, according to their report, the device contains $205.22 worth of components and costs roughly $214.57 to manufacture. The Galaxy Tab has received some serious criticism for its less-than-competitive price-point ($599 in the U.S.) when compared with Apple’s 3G iPad ($629); iSuppli estimates that the 16GB 3G iPad contains $264.27 worth of components. The Tab’s most expensive bits are its 7-inch display and NAND Flash memory which cost $57 and $51 respectively. If iSuppli’s estimates are accurate, it would seem as though Samsung voluntarily put the Galaxy Tab at the higher end of the price-point spectrum.

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18 Comments

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  • http://twitter.com/netposer Rob Baker

    Wow, $215 to manufacture?

    I think the headline is misleading.

    It should be “Samsung Galaxy Tab packs $205 in materials, $9.35 to manufacture = $215 total cost”

    • Anonymous

      yes, I was thinking it cost Samsung $419.79 to produce!

  • Anonymous

    Because R&D, Shipping, Packaging and Promotion cost nothing right?

    • Chet Stovepiper

      well its basically a larger phone, so its not like it takes a TON of R&D to do the opposite of miniaturize a phone. also, the OS is free and developed so they just have to skin it. shipping/packing/promotion are valid points.

  • http://twitter.com/netposer Rob Baker

    And this story begs another question. Why is a cheap phone or smart phone sold for $600? I’m sure the Galaxy S (phone) has to cost a lot less than the Tab.

    The carriers and manufacturers are in collusion to keep unlocked/unsubsidized phones artificially high.

  • Anonymous

    Wait, so only Apple can mark up their prices?

    • Feorassa

      In a sense, yes. The Yugo could have been made from the exact same parts and to look just like a BMW but no way could you smack a BMW price tag on it. The name means something like it or not.

      Besides, Samsung marked it up for even higher profit than even Apple would have dared.

      • Anonymous

        Yeah, but that’s assuming an Apple product is akin to a BMW. Which it clearly isn’t.

        BMW/Lexus/Mercedes/Porsche etc are all in a clearly different market than the common branded autos like Ford or Toyota.

        Apple resides in the exact same market as other manufacturers like Dell HP or Samsung. Apple’s product just has a more distinct product as its all handled by one maker for primary Hardware/Software integration where as others utilize the fruits of many other companies labors. But, it the end Apple has the exact same problems as anyone else.

        As their market share grows this similarity to PCs and Android devices becomes far more visible due to simply more people using them, more hackers, more break fixes, etc.

      • Feorassa

        Well this is just a difference in opinion. I believe that it is an accurate analogy that has in fact been used many times in the tech industry. They are known for being the “BMW” of computers.

        And BMW/Lexus/Mercedes/Porsche reside in the auto market as generally as you say Apple resides in computer manufacturers like Dell, HP, etc.

  • http://twitter.com/Obj_me Michael Hurlburt

    Yeah that makes sense… Bastards!!! On another note the reason samsung is pricing this so high is to appear as a high-end contender… Look at the viewsonic g pad or whatever it is; sears is selling it for $379!!! Some people may buy the galaxy tab or iPad BECAUSE it costs more. Also look at the cost of the iPad v unlocked iPhone! Same story there, Man I hate the carriers and for that matter the manufacturers too!

    • FanBoyCawkRawk

      This was my thought exactly.

  • Anonymous

    Personally I think that Samsung is sending a message to Apple and all other possible contenders. It does not want to seem as if it is getting its sales by being the cheaper option.

    Anyways, I think Apple sucks for allowing the Samsung tab to cost less then the iPad even though its bigger. Its lacking key elements that is being brought by the GTab

  • GoogleGuy

    Are you Sandy’s sister?

  • Anonymous

    Flagged for content, and using the word, got!

  • Anonymous

    Hey I plan to buy one and if it were my business I would price it as is. The reason: they are the first on the block! I have an WIFI iPad and and iPhone 4. I don’t have to tell you coverage is rare when on the road. As a backup I also carry an incredible with Verizon. I am excited to get internet on the go with a Tab on Verizon without using my iPad and MiFi (that’s a joke of an arrangement for using the iPad on the go)! Until Apple brings the iPhone and 3G or better iPad to Verizon….. well the first kid on the block can sell away at a higher than normal price. As more devices catch on I expect contracts will go away and prices will come down. A year from now I expect the tab to be $399 or less, no contract.

  • Sean76

    To be severely competitive vzw and sprint should have put it on contract for $399 with a mail in rebate for $100, bringing it to $299…They would have sold millions during the Holiday season…but $500 or more is just not a realistic price point with the way the economy is! There taking advantage of us, and for that reason I’m staying away from buying one.

  • Anonymous

    I disagree with the assumption here that Samsung is putting the price high. Between iSupplies total cost to manufacture of $415 and the selling price of $600 that is only $185. You then remove other associated costs to deliver the product, market the product, and pay the middlemen and/or retailers and you are at a typical level of profitability for each product sold.

    Additionally, this is absolutely no different than what Apple is doing with its iPad. Almost the same exact margins. If you want the market leading technologies, then you have to pay the price. Personally, I can wait for more competition and better options that could actually replace a laptop as neither of these items being discussed can do that.

  • http://twitter.com/ElectroCar Michael Lemus

    Not surprising at all. Cost to manufacture things usually cost about the same for most gadget companies. I think that Samsung should have priced it at 350 for the 7 inch model and 450 for the upcoming 10 inch model. From reviews it shows Samsung has done a great job at making sure Android runs smooth. Couple that with Google doing constant updates and you can easily make up for the lost 50 dollars in the long run with more sales. Think about it Samsung before the market is flooded with tablets.

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