Where is the money? $660 Galaxy S5 material cost is $256

in the Galaxy iFixit S5, after the “big eight pieces of” IHS soon after the Galaxy S5 material cost: $256. And just launch the GS 5 bare machine sells for 660 dollars. We this kind of “natural” for user can not help but ask, where the other more than $400?

let’s take a look at roughly GS 5 main material cost list:

the most expensive cost spent on GS 5 on the screen, the 5 inch screen cost $63.

GS 5 using the samsung home DRAM and flash memory chips, costs $33;

use the qualcomm Xiao dragon 801 processor (no price);

fingerprint sensor cost $4, the iPhone 5 s fingerprint sensor cost $15. A penny a points goods, according to the test site GS 5 fingerprint identification is not generally harder to use;

in addition a creature of a Maxim tracking sensor costs $1.45, is mainly used to collect user data to triumph.

in addition, GS 5 unit assembly is expected to cost about $5.

if only according to the material cost, then every sell a samsung GS 5 can get more than 60% of the gross profit margin. But that isn’t so simple. The bare machine price of iPhone 5 s also reached $650, and the material cost just $199. What money is gone?

this problem don’t need to explain more. Provide only a passing cloud network editor king hunting data as reference:

samsung 2013 Q2 market push the budget of $12.7 billion. A number that is close to Google’s fees paid for the acquisition of MOTOROLA ($13 billion). At the same time, a number that is enough to buy three HTC.

PS: but must indicate that mobile phone pricing is a complicated problem, not only including the material cost and marketing costs.