Wonder how much Samsung pay in materials every time an underpaid Foxconn employee assembles an iPhone killer in the assembly line? A new analysis conducted by the research firm IHS tells exactly that. According to the analysis – detailed by Re/Code, Samsung’s BOM for the Galaxy S7 is $255. The most expensive component found in the Galaxy S7 is its processor. According the research firm, Samsung pays $62 for each Qualcomm’s Snapdragon 820 processor. For the camera, it costs Samsung $13.70.
In the US, an unsubsidized Galaxy S7 will cost you $670. So does this means that Samsung takes $415 in profit every time it sells a Galaxy S7? Nope. IHS’s analysis obtained this price by only counting the cost of each components and an additional $5 for the assemblement. The cost, however, does not adds other big expenses such as marketing, R&D, patent royalties and such.