IHS says Samsung’s Galaxy S7 doesn’t “hold its price as well as an Apple product.” A preliminary estimate by the research group and its Mobile Handsets Intelligence Service shows that the Samsung Galaxy S7 smartphone costs about $255 to build.
The U.S. version of the Galaxy S7 with 32GB of NAND memory carries a bill of materials (BOM) of $249.55, which rises to $255.05 when the manufacturing cost is added, according to results from the IHS teardown of a phone purchased from Verizon. The retail price of the Galaxy S7 at Verizon is $672. As another point of reference, Apple’s 16GB iPhone 6s has a BOM of $187.91 and retails for $649.
“The Galaxy S7 is the upgrade Samsung had to do, but there’s not a lot of trailblazing happening on the device,” says Andrew Rassweiler, senior director of cost benchmarking services at IHS. “It’s more a case of small refinements. Samsung is spending more and more on its bill of materials, but they’re selling something that doesn’t hold its price as well as an Apple product. Samsung’s S7 BOM is almost $60 more than a comparable iPhone.”