Nov 1st, 2010

It’s just been revealed that it costs Samsung $205 in parts to build one Samsung Galaxy Tab. “So why are we paying $500+!!?” As usual with any of these findings, it’s imperative to note – before you curse anything that has Samsung written on it – that other costs must be taken care of with the sale of a unit. An iPhone costs less than $200 to make but Apple sells it for 600, for instance. It’s necessary to pay for workers, research and development costs, factory maintenance, software development, marketing, distribution.


I could go on, but I won’t. Having said all of that, though, it’s at least comforting to know that it’s cheaper for Samsung to build this than it is compared to the iPad (16 GB version costing $264, compared to iSuppli.) Here’s what they attributed this to:

“Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is larger version of Samsung’s Galaxy S smart phone,” said Andrew Rassweiler, director, principal analyst and teardown services manager for iSuppli. “While the design approach makes the Galaxy less expensive to produce than the iPad 3G, it also makes for a product that lacks the same usability. The Galaxy Tab’s screen resolution, size and technology are not at the same level as the iPad. This is a critical difference, given the fact that the display is a key differentiating factor for the iPad.”

And why that’s comforting? I have no clue. iSuppli for the full breakdown.

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