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You can pay $800 for a phone. Or you can buy a car. Since it probably costs about $200 for Samsung to manufacture it (averaged over 6 months of estimated volume manufacturing), they are making a decent profit. This is an Apple-like profit margin.
If you're in the US and are dying to get your hands on a Samsung Galaxy S III, Amazon has come to your rescue. However, you do have to shell out quite a large sum for the privilege of being one of...
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Henk Poley's profile photoPascal Pochol's profile photoNicolas Charbonnier's profile photoJoão Pinto (Lamego)'s profile photo
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Mind you, to put it into perspective, you could lose 32 Billion on the value of Facebook or maybe put that money to good use in the world instead.

#Failbook
 
Twice the price of the galaxy nexus.. no thank you
 
I get a free upgrade from Voda at the beginning of next month, hurrah for contracts!

#Winning
 
+Guy Eastwood you like paying $2000+ for a 2-year contract? I even see people pay $3000+ for their 2-year phone contract.
 
Hope you realize that they up your cost to subsidize the phone. You pay either way. Nothing is ever free
 
Nah, I'll be paying around £35/month I should think, so about $50x12 = $600/yr with 600 minutes unlimited data & texts. On an 18-month contract, so approx $900 including 18 months of calls, data & texts

#UKtariffs
 
+Guy Eastwood ok so UK telecom aren't as gouging as the US ones, yet $1200 for the 2-year contract + roaming +overage charges that's not exactly cheap.
 
But this price is just for early pre-orders etc. Only tech bloggers will pay this ;-) Still, street price of $599 and less still means good profit. Hell, you can almost buy an Ultrabook for that - they also use advanced silicon.
 
+Steve Chippy Paine ya it's funny that they are selling these ARM powered gadgets at near-Ultrabook prices yet it costs them 3x less to manufacture than an Ultrabook.
 
Don't exaggerate! High end platforms are very expensive. regardless of ARM or X86. The process requires best design engineering materials and production facilities along with best radios and software. This is not a $35 chinese rip-off.
 
+Steve Chippy Paine most high-end ARM Powered phones are manufactured for less than $200. That's components and the assembly, all included. Sure enough Samsung has Billions of dollars invested in new AMOLED factories, and starting the new 32nm Exynos4412 is expensive, but they deal with economies of scale, their investments are more than recouped by the tens of millions of devices that they are sure to sell using these screens and processors. Also, it seems Samsung is ready to open Exynos and Super AMOLED to more manufacturers now. Also consider the Exynos4 are quite close to Apple A5 processors, probably manufactured in the same Samsung ARM Processor foundries, so all of Apple's huge orders also helps Samsung lower their costs with scale. The iPhone4S costs $150 to make and Samsung Galaxy S3 is probably around $200 mainly because the 4.8" Super AMOLED is a lot more expensive than the iPhone retina display.
 
+Steve Chippy Paine ya, they are making a $600 profit per sale if sold at $800. If they sell each at $600 they still make $400 profit per sale. We're talking 300% profit margin at $800 and 200% profit margin at $600. Even at $400 it's still a 100% profit margin business. While Ultrabooks cost $600 to make and $900 to sell (through retail) the Ultrabook is a 50% profit margin business.
 
They'll never beat Apple by playing the same game, they have to slash those huge margin, still make a profit, but sell better hardware at a much lower price than Apple to take over the world.
 
+Pascal Pochol I agree but Samsung wants profits as long as those are attainable. And I think Samsung is able to dominate in high-end and low-end, and if/when Huawei and others come in and price their high-end like P1S and D Quad sub-$300 I think Samsung is ready to match those prices also. I think Samsung times profit margin according to AMOLED production capacity.
 
Well, margin is what makes a business tick.
 
Sure but there is no reason for iPhone users to switch to Android if the price is the same, regardless of how superior the new device might be. On the other hand if a superior device came at a much cheaper price point it would get harder to justify paying the apple tax. Margin isn't everything, I can sell a phone and make a $1000 margin on it, but if nobody buys it I won't last long. $100 margin on millions of phone is still a pretty nice margin if at the same time you increase your market share. But that's just me, I would rather make a little bit many times than a lot a few times. Kind of like the pre micro$oft Nokia.
 
Yup +Pascal Pochol Androids lower price is its best feature. But even on most markets where high-end Android phones costs the same (mostly on contract), Android does sell more than 2x more than the iphone. Consumers choose Android for its better features overall and the nicer feeling of not getting locked into a one-company platform.
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