Samsung Galaxy S4 Costs $244 to Manufacture, IHS Says

Samsung Electronics Co. (005930)’s Galaxy S4, a bigger and faster smartphone unveiled last week, costs $244 to make, according to data from market researcher IHS iSuppli.

A larger and more-advanced display, faster chip and more computer memory drove the cost of building the entry-level 16 GB Galaxy S4 15 percent higher than its predecessor, Galaxy S3, the El Segundo, California researcher said in a statement today.

The handset, which has a 5-inch screen and 13-megapixel camera, is among three high-end smartphones Samsung is releasing this year after being overtaken in the U.S. by Apple Inc. (AAPL)’s iPhone 5 in the fourth quarter. The materials and manufacturing cost of the iPhone 5 is $207, iSuppli said in September, just after it debuted.

“Although its hardware is not radically different from the Galaxy S3 introduced in April of 2012, the Samsung Galaxy S4 includes some critical component updates that enhance its functionality,” Vincent Leung, senior analyst for cost benchmarking at IHS iSuppli, wrote in the statement.

The estimates are based on a “virtual teardown” and may be amended after a physical examination of the device and its components, the researcher said. The new model will be available in the U.S. beginning April 26.

To contact the reporter on this story: Reed Stevenson in San Francisco at rstevenson15@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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