Galaxy S6 Edge profit for Samsung, more expensive than iPhone 6 build
The Galaxy S6 Edge price is set at around $1000, which is decidedly a lot more expensive than the base model of the iPhone 6. What’s more surprising is that building the Galaxy S6 Edge actually costs more than building any iPhone 6 or iPhone 6 Plus model. We all know that smartphone manufacturers are in it for the money, and Samsung is no exception to that rule. ReCode has published an early report coming in from analysts at IHS which details how much the Galaxy S6 Edge build costs Samsung, and their findings are quite surprising.
Galaxy S6 Edge prices are high, because of the dual edge displays that adorn both sides of the phone, while the iPhone 6 and 6 Plus cost more to manufacture because of the high-end materials used in the chassis, camera, display and fingerprint sensor. Still, many Apple-skeptics would have said that Apple was still making more profit than Samsung on their flagship. There’s no doubt that both these companies are profiting big time from their flagship sales, but Samsung seems to be getting ahead a bit this time.
According to the report, building the Galaxy S6 Edge costs around $300 to build, which is more than the $250 and $260 that Apple is paying to build each individual iPhone 6 and iPhone 6 Plus respectively. As you can see, it’s not such a big difference, but racking up the numbers and adding all the orders together do spell profit of some kind. Note that these are just manufacturing costs for the Galaxy S6 Edge and iPhone 6, which means that these are not the only costs that will interfere with profit. That being said, if you would think that if the Galaxy S6 Edge price is $1000, Samsung is making $700 off of each of the buyers, you might be very wrong. Those leftover $700 after manufacturing is completed have to be divided in many many parts.
Samsung and most of the other OEMs spend a lot of money on marketing and advertising their products, like the Galaxy S6 Edge, sending them out for free to reviewers to build hype, pay the factories that make the parts, pay the workers, pay the distribution companies, pay the CEOs and much more. The more likely profit that Samsung is making off of each Galaxy S6 Edge unit should more likely be between $50 and $150, depending on variables. You have probably figured this out, but the most expensive Galaxy S6 Edge part is the dual edge display and its components, which costs Samsung roughly $85 per unit.
The IHS report that ReCode is basing their prices on also reveals that Samsung did indeed use an LTE modem from Qualcomm in the Galaxy S6 Edge and in the regular, Galaxy S6 as well. The rest of the smartphone is all made up of Samsung technology, including that magnificent dual edge display. Having read and acknowledged these findings, we do understand why the Galaxy S6 Edge is expensive, yet we’re still wondering how come Samsung is still putting so much money into advertising. We know the answer to that, but Apple seems to not care that Samsung is trying hard to outdo the acclaimed iPhone 6, and fans tend to agree. Although I’m not glad to say it, Apple is still on the top when it comes to smartphones, and now, wearables.
In any case, the Galaxy S6 Edge is probably the most stylish Android smartphone on the market and when discussing design, it certainly aims a big blow at Apple devices, as it seems to me sleeker, more appealing, more rugged and more durable than the iPhone 6 and 6 Plus. I do think many are missing the waterproof certification which turned the Galaxy S5 into a fan-favorite, but the fast memory and superior chipset tend to compensate for the losses. Overall, the manufacturing costs for the Galaxy S6 Edge mirror Samsung’s newfound commitment to high-end materials and design.
Tags: Apple, Galaxy S6 Edge, iPhone 6, Iphone 6 Plus, Samsung