The famous iSuppli has come up with their manufacturing cost break up again as usual. They claim that the recently launched Samsung Galaxy S4 actually costs more than an iPhone 5. Though Samsung’s devices are touted for their plasticky build it is surprising to know that their flagship device actually costs more than Apple’s premium material made iPhone 5. Of course there are many other factors attributed to the final price, companies like Apple give a longer commitment for large quantities thus reducing the price spent on manufacturing and material procurement and on the other end Samsung actually manufactures most of the components used in Galaxy S4 thus cutting down costs compared to other companies.
iSuppli says that manufacturing a Samsung Galaxy S4 costs around $244 which is almost 15% more than its predecessor, Galaxy S3 and 17% more than iPhone 5. The hike in costs are mainly due to improved specs and additional sensors, the phone offers a plethora of sensors and the latest version of octa core processor with a much higher resolution screen.
The tricky part now for Samsung is to price the phone right, with higher manufacturing cost it is very likely that Samsung will sell the Galaxy S4 at a price that matches Galaxy S3 or even higher. With the competition heating up and HTC One driving lots of craze for the well built device compared to the S4 it is quite important for Samsung to price the device right and the yet to be launched newer version of iPhone is to be considered as well.