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What ‘cheap build?’ Galaxy S 4 components estimated to cost more than iPhone 5

March 19th, 2013 at 3:20 PM
Samsung Galaxy S 4 BOM

Just because something is built with plastic doesn’t necessarily make it cheap to build. The researchers at IHS on Tuesday released their bill of materials (BOM) estimate for the Galaxy S 4 and found that the HSPA+ version has a BOM of $236 while the LTE version has a BOM of $233. When factoring in an $8.50 cost of labor per device, IHS estimates that the HSPA+ Galaxy S 4 costs around $244 to build while the LTE version costs $241 to build. The reason that the LTE version is cheaper, says IHS, is that it uses a less costly processor than the HSPA+ version. As Business Insider’s Steve Kovach notes, IHS’s Galaxy S 4 manufacturing cost estimate is significantly higher than the $207 manufacturing cost estimate the firm had for Apple’s (AAPL) 16GB iPhone 5.




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