Galaxy S9 Plus costs little more than Galaxy Note 8 to manufacture but very much less than the iPhone X. This was revealed by a table created by Tech Insights which compared the costs of goods sold for Samsung’s flagship devices. Tech Insights also revealed that the goods sold for Galaxy S9 make it more expensive that iPhone 8 Plus and less than iPhone X.
Below table gives you the over view of what is discussed in above paragraph. These cost estimations are based on concrete data and not adjusted to account for the gradual decline in the price of older devices.
Galaxy S9 Plus Costs less to Build than Flagship iPhone X
From this table it is evident that iPhone X has higher cost of goods than any of Samsung’s current flagships. The processor of Galaxy S9 Plus costs $67. On the other hand, processor of iPhone X costs $64.50.
There isn’t a big difference in the manufacturing costs – around $10.50 (£7). But there is in the profit margin each manufacturer is working with: the Galaxy S9 Plus retails for $839.99 (£739), whereas the iPhone X has a list price of $999 (£999).
It would appear the main reason the iPhone X costs more to manufacture than the Galaxy S9 Plus is because Apple has to fork out more for the screen, which it orders from Samsung Display, while Samsung Mobile can secure it for a reduced rate.
In reality, however, Samsung could be paying a lot more to build the Galaxy S9 Plus than Apple forks out for the iPhone X. We’ll never know – that is, of course, unless both manufacturers agree to make their ledgers accessible to the public.
What do you think of Samsung’s Galaxy S9 pricing strategy?