Here is why the Galaxy S8 series costs more than Galaxy S7/S7 Edge
Ever wonder why Samsung is charging you more for Galaxy S8/S8+ compare to last year’s flagships? And no, it’s not because the company wants to make some quick bucks following the expensive Note 7 debacle.
The reason quite simple. The BOM (Bill of material) is more for Galaxy S8. The latest flagship costs $301.60 and adding the manufacturing expense ($5.9), the total expenditure reaches to $307.50. This is quite an increase from Galaxy S7’s $264 figure and Galaxy S7 Edge’s $271 price tag.
That doesn’t mean Samsung is taking a huge profit on every Galaxy S8 purchase (The original MRP for Galaxy S8 is $720, a steep $410 from the manufacturing cost). One need to add other expenses like marketing, supply chain, a cut from sales partners and import fees in different countries. Also, add to the fact that Samsung spends crazy on R&D every year ($13 Billion alone on 2016).
Unlike the rivals (looking at you…Huawei), it’s good to see Samsung isn’t cutting any corners to bring down manufacturing cost for flagship offerings.
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