Galaxy S10 Plus Costs $420 To Make?

Last Updated on Mar 5, 2019 by Fawad Murtaza

It is no secret that smartphone prices are on an all time high. Previously where a flagship smartphone could be had for $650 or $700, the prices now are just cruel. Now a days, a flagship smartphone from, say, Apple costs over a $1000. And we all know our beloved Android manufacturers, don’t we? If Apple did it, we have every right to do it. So Samsung Galaxy S10 Plus costs around a $1000. This begs the question: Are all of these smartphone manufacturers just trying to rip us off?

Samsung Galaxy S10 Plus

Samsung Galaxy S10 Plus

How Much A Galaxy S10 Plus Costs

A recent report by TechInsight estimates how much Samsung actually spends on the Galaxy S10 Plus’s hardware. The priciest single component is that beautiful AMOLED display. It costs around $86.50, a $9 price increase from the previous year. The next big cost is associated with the modem and the Exynos chipset which powers the phone, $70.50 to be exact. While the much improved triple camera setup and the memory only cost around $50 combined. Adding up all of these costs and the costs of other internals, the Galaxy S10 Plus costs around $420.

Chart detailing the component costs

Chart detailing the component costs

A device which costs Samsung $420 to make, selling for a $1000 sounds like a rip-off,right? Well, not so much. You see internals are only part of the story here. There are other costs associated with a device as well. Things like R&D, Marketing, and after sales services all cost money which is not reflected in this $420.

So the next time your Android manufacturer says the device sells for a reasonable price, i think you should believe them. More often than not the profit margins on Android devices are essentially close to zero and with the kind of innovation we are seeing in the Android world right now, its almost insane. Mind you we are only talking about Android manufacturers here and not Apple who has the highest profit margins when it comes to smartphones.

Will you be buying a Galaxy S10 Plus despite its $1000 price tag? Sound off in the comments down below!

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