Disassembled S5 Galaxy, Samsung Profit Revealed

Samsung's flagship smartphone , the Galaxy S5 has begun to be marketed in Indonesia with a high enough price , Rp 8.5 million .

This price tag makes the consumer wonder , what makes it so expensive ? Analytical company IHS S5 dismantle components and reveal their cost of production .

As quoted Recode , Tuesday ( 04/15/2014 ) , the most expensive component is used Samsung 5.1 -inch full HD screen material Super AMOLED unit price of around 63 U.S. dollars . The screen is 12 dollars cheaper than the components of the Galaxy S4 screen size of 5 inches .

From the IHS research , revealed the Samsung seeks more cost cuts in order Galaxy S5 profit margins can be higher than the S4 . DRAM and flash memory components used Galaxy S5 combined even if for only 33 dollars .

" We saw some recycled components , which previously was also used in other Samsung devices , " said Andrew Rassweiler , an analyst with IHS . " There is no breakthrough or a new, more advanced components , Samsung just continue what is already there , " he added .

For sensor fingerprint scanner used Samsung , the price was also cheaper than the sensors used by Apple for its iPhone 5s . Fingerprint sensor used Samsung costs only 4 dollars , while that carried the iPhone reached 15 U.S. dollars .

Meanwhile , the biosensor chip used artificial Maxim Samsung to monitor its health parameters , adding the cost of production of 1.45 U.S. dollars .

According to IHS , the estimated price of all components used by the Galaxy S5 is 256 U.S. dollars ( approximately USD 3 million ) .

This means that Samsung took a gross margin of USD 4.5 million or about 52 percent , assuming the price of the Galaxy S5 in Indonesia , which is USD 8.5 million .

If the total component and production costs incurred Samsung only Rp 3 million , why the selling price is very high ?

IHS said , price does not include costs for research and development incurred Samsung , software licensing , distribution costs , and marketing costs to be incurred Samsung .