build Build A Galaxy S5 For $256

[Turk.]

By Arik Hesseldahl April 15, 2014, 12:01 AM PDT

The Galaxy S5, Samsung?s new flagship smartphone, costs about $256 to build according to a teardown analysis by market research firm IHS that will be published later today.
Released over the weekend, and winning praise for features including its water-resistant design, the device sells for $660 without a contract, implying a gross margin for Samsung of about 60 percent. (It sells for $200 with a two-year contract at most carriers.)
Samsung declined to comment on IHS? findings.
The cost of components, known in electronics industry lingo as a bill of materials, has been drifting upward on Samsung phones in recent months, said Andrew Rassweiler, an analyst who heads up IHS? teardown research efforts. ?Our main takeaway is that Samsung has been moved up to the higher end of the cost spectrum. It used to be that its typical flagship phone sold for $600 without a contract and had a bill of materials of about $200,? Rassweiler said. ?Now they?re inching up above $250 regularly.?
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