But, possibly worse than that for Samsung, it’s cheaper than the comparable Apple iPhone 6 Plus.
IHS pulls apart machines to discover the bill of materials (BOM), that is to say the price of the components inside a gadget. The BOM does not include imponderables such as marketing, which actually do have a large impact on the real cost of gizmos to produce.
IHS said the Apple iPhone 6 Plus 64GB has a BOM of $236.04 and sells at $849.
Samsung’s machine with 64GB costs $284.85 to make, and sells for $799.99 – let’s call that $800.
It’s evident that there are considerable margins for both Apple and Samsung but that’s not the whole picture. Samsung generally speaking has an advantage because its factories produce many of the components that populate its machines.
IHS said that the Samsung Galaxy is the most expensive the company has yet made. It faces competition for its products not only from Apple, globally, but also locally in Asia with companies knocking out smartphones at prices it cannot match.