HomeMobilesAndroidHere is why the Galaxy S8 series costs more than Galaxy S7/S7 Edge

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.

Want to read more in detail? Head over to here.

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