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It costs Samsung $420 to manufacture the Galaxy S10+, the display is the most expensive component

A recent teardown by TechInsights has revealed that it costs Samsung approx. $420 USD (about Ksh. 42,000) to build the Galaxy S10+.

The teardown also revealed that the display of the S10+ is the most expensive component of the smartphone. Techinsights estimates that the display costs about $86.50 which is close to about 20% of the bill of materials.

The chipset and related peripherals are estimated to cost $70.50 while the camera is the third most expensive component and is estimated to cost $56.50.

Galaxy S10 Plus Bill of Materials

The bill of materials is often an accurate yardstick to use when determining the ‘true’ value of a smartphone. This is opposed to just using the retail price to determine the value of a smartphone.

The S10+ has a suggested retail price of around Ksh. 105,999 and at the price point, the BOM represents about 40% of the retail price.

This implies that Ksh. 63,999 (60%) goes towards R&D, marketing, distribution, margin and other related costs associated with the device.

In comparison to Apple, the iPhone XR costs around Ksh. 150,000 and about Ksh. 44,500 to build.

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