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SMART IDEAS / INDUSTRY

REVEALED: What Samsung S4 Is Really Worth?

By Oonagh Reidy | Thursday | 21/03/2013

Launched last week with fervour, the S 4 has bigger 5" HD screen, faster processor and new software.

But now we can reveal how much Samsung Galaxy S 4 "life companion" smartphone is really worth.

 US$236.

For the components inside 3G HSPA+ version anyway, while the 4G version costs $3 less.  Slap on manufacturing costs of $8.50 and the models cost just over $240 to make.

That's according to iHS iSuppli who took apart the new 5 inch S4 with new features such as S Health, scroll pages with your eyes and open apps by just hovering over the screen.

However, it must be noted IHS does not include marketing, sales and distribution costs in its estimations.

The Korans have yet to release price for the new Galaxy S4, which will be 2013 hero phone for the world's biggest phone maker.

The bill of materials (BOM) is up significantly  (+15% or $30.40) from the Galaxy S III due to major upgrades - full HD AMOLED display, a slew of new sensors (promising health benefits), faster processor and memory, according to IHS iSuppli.

The full HD AMOLED screen ($75), processor ($30/$20) and Flash memory ($28) are the three single biggest cost for Samsung S4, followed by the 13Mp camera ($20).

"Although its hardware is not radically different from the Galaxy S III introduced in April of 2012, the Samsung Galaxy S4 includes some critical component updates that enhance its functionality as well as its BOM cost," said Vincent Leung, senior analyst at IHS.

"Among the upgrades are a larger, full high-definition (HD) display; a beefed-up Samsung processor; and a wealth of new sensors that set a record high for the number of such devices in a smartphone design."

<div class="htmlEditorPageBreak">- Page Break -</div>S4 full-HD active-matrix organic light-emitting diode (AMOLED) display (1,920 X1,080) is estimated to cost $75, $10 more than to the S3's  1,280 by 720 WXGA display. This is the largest cost increase for the S4 compared to the S III.

Being a major manufacturer is an advantage for electronic giant as Samsung accounts for at least $149 worth of components in the HSPA+ Galaxy S4, representing 63 percent of the total BOM.

The Samsung S4 model expected to come to OZ uses 3G Exynos 5 Octa eight-core processor chip of its own design, while 4G LTE Galaxy S4 employs quad-core apps processor Qualcomm Snapdragon 600, and LTE radio.

There is expected to be some variances in the software and app performance for the S4 3G and 4G models, , although this had not been confirmed by Samsung.

The array of sensors on S4: accelerometer, RGB light, geomagnetic, proximity, gyroscope, barometer, IR gesture and even temperature and humidity varieties, are believed to cost $16.

This virtual teardown and pricing estimation was derived from information and specs released by Samsung, and information from component suppliers.

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