As Samsung Galaxy S7 has started to become available in selected markets throughout the world, all sorts of analysis are being done to the new smartphone. For IHS who has a dedicated division that is specialized in analyzing contents within electronic products, it has come out with an estimated production cost for Galaxy S7.
Using the 32GB version of Galaxy S7 which the company has obtained from Verizon, the total cost of components for the device is said to be USD 249.95 (about RM 1,035). Once manufacturing cost is added into the mix, the figure will then go up to USD 255.05 (about RM 1,056). As a comparison, the 32GB Galaxy S7 is priced at USD 672 (RM 2,780) through Verizon in United States.
In general, the estimated production cost for Galaxy S7 is more or less the same as per Galaxy S5 and lower than Galaxy S6 edge but still higher than a 16GB Apple iPhone 6s Plus. Despite that, the Galaxy S7 actually contains a number of small refinements over its predecessor rather than a major overhaul according to IHS.
With a pricing that almost reaches the RM 3,000 mark, some might wonder why Galaxy S7 is priced that high when its components only cost Samsung less than half of its price tag. Well, one must not forget that there are always other costs involved in bringing a product to life including R&D, marketing, and distribution. It is a business, after all.