Samsung Galaxy S4 sets a new pace, shipments blow early estimates



The Samsung Galaxy S4 is undoubtedly one of the most prominent smartphone of this year, outwitting any other competitor device in the arena so far. It is scheduled to be released internationally in a matter of weeks but research analyst Mark Newman asserts that current Galaxy S4 shipments have long surpassed any estimates to date.

The following is an extract from the report:

We estimate that, while 53% of Galaxy S3 Bill of Materials cost was internal, 58% of Galaxy S4 BOM costs should now flow through Display/Semis (Memory & S.LSI). We estimate that, while 64% of Galaxy S3 BOM cost was within the Samsung Group (i.e. SEMCO, Samsung SDI, etc.), 68% of Galaxy S4 BOM costs should now flow through the Samsung Group. Additional profits to Samsung group entities should benefit Samsung Electronics in the form of increased equity income.

Shipments are expected to boost in the next quarter but it should be noted that 68% of the Galaxy S4 is manufactured by Samsung itself, that compared to the 64% for the Galaxy SIII. The small but significant percentage difference will further boost Samsung’s revenues.

“Galaxy S4′s production rate of 10M units/month appears stronger than our projections despite some potential supply issues in March,” the analyst wrote in a research note picked up by Barron’s.

The South Korean manufacturer should be able to maintain similar margins despite that more expensive components are used in the S4, thanks to the fact that more components in the new handset are built by Samsung’s own component arms.