Snapdragon 600 Galaxy S4 costs $237 to manufacture

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The U.S-bound Galaxy S4 powered by the quad-core Snapdragon 600 SoC produced by Samsung actually includes a lot of in-house components that helped to keep unit prices low, allowing easy mass production. South Korean manufacturer was estimated to spend around $237 to build a Galaxy S4 handset according to a report from the market research firm IHS.

The U.S 16GB Galaxy S4 sells for $639 in the US without a contract through AT&T, this is around $400 higher than the production price. The S4 cost is not far below the cost of Samsung’s Galaxy Note 10.1 tablet, the cost of which IHS estimated last year to be $270.

Virtually all internal components were made by Samsung, that includes the 16GB NAND flash, the display, touchscreen parts and some unlabeled components, including the camera module and some wireless baseband chips. The main application processor/SoC was manufactured by Qualcomm. Other components include a Wi-Fi and Bluetooth chip from Broadcom, a power management IC from Maxim and Triquint Semiconductor, which provided some wireless chips.

“Samsung’s strength is this ability to in-source to itself,” IHS analyst Vincent Leung said in an interview. “They just keep adding to the list of components that they can supply to themselves.”

The Exynos 5 Octa variant should cost higher than it’s Snapdragon brother but estimates will probably put it around the same price margin of ~$250.

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