We’ve been asking, ever since the official pricing for the Galaxy S6 and the Galaxy S6 Edge was announced, why on Earth the latest of Samsung’s phones are so bloody expensive. Sure, there’s all new materials involved but 16,000 ZAR? Really?
Yes, really. And there’s a reason for that. Re/Code has managed to secure a breakdown of the handset from research outfit IHS, who analysed the costs of making the Galaxy S6 Edge. Overall, the materials and components in the 64GB version of the handset handset come to $290 (around R3,500), which is more costly than Apple’s iPhone 6 Plus ($263/R3,160).
Costs are split between the curved display (around R1,050 – don’t break it, the bits come from overseas), processor (R360), RAM and storage (R330 and R300 respectively), with the chassis and other components absorbing the remainder. These figures are, technically, estimates and they’re also for the Verizon-sold 64GB S6 Edge but the pricing should carry over to Samsung’s devices here in SA.
As Engadget points out, the R3,500 total is just for the handset’s build. They’re not taking into account patent and licensing fees, which can put a considerable dent in a profit margin, nor are the actual manufacturing and shipping costs accounted for. And that’s before the phone gets its service provider markup.
That R16,000 price isn’t any less steep, but at least we can kinda see where Samsung’s handset cost is coming from. Kinda. We still wish it was cheaper, though.
