Samsung Galaxy S7 totals 255 Euros in production costs

The Samsung Galaxy S7 and S7 Edge will be available in most regions worldwide by the end of March if not already with Black Onyx, White Pearl, and Gold Platinum color options. Of course, retail prices are quite high at 700 to 800 Euros for each of these flagship devices. After taking apart said smartphones, IHS has estimated that the actual production costs and bill of materials come out to be around 255 Euros for the Galaxy S7.

The final tally corresponds to previous reports from Recode.net about the Galaxy S5. IHS has disassembled a wide variety of popular smartphones in the past in an attempt to estimate the actual value of each smartphone including the iPhone 5c, iPhone 5s, and Galaxy S4. Perhaps unsurprisingly, the most expensive internal component is almost always the central processor.

The Qualcomm Snapdragon 820 SoC is estimated to cost Samsung about $62 USD for every Galaxy S7 smartphone produced to account for about a quarter of the total production cost of the unit. The SoCs are manufactured in a 14 nm LPP process. The new 12 MP dual-pixel cameras cost about $13.7 USD each while assembly is estimated to be $5 USD. Development, marketing, and distribution costs are disregarded for these estimations from IHS.

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