Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Samsung’s Feature-Packed Galaxy S8 Phone Comes With Higher Parts Costs

    By
    Todd R. Weiss
    -
    April 24, 2017
    Share
    Facebook
    Twitter
    Linkedin
      Samsung Galaxy S8

      Samsung has packed its latest Galaxy S8 smartphone with components costing $43.34 more than those inside its last standard flagship phone, the Galaxy S7, as it continues to add features to attract more buyers.

      The parts tally for the new Galaxy S8 was revealed through a recent device teardown and report by research firm IHS Markit, which determined that the total parts list in the S8 adds up to $301.60, while manufacturing costs add another $5.90 per phone, according to the April 20 report.

      That $307.50 in total parts and manufacturing costs is $43.34 higher than the parts and manufacturing costs for last year’s Galaxy S7 handset, and $46.29 higher than last year’s Galaxy S7 Edge phone, which had a larger and curved display, the report states. The retail unsubsidized price for a new 64GB Galaxy S8 phone starts at $720. IHS has not yet conducted a teardown analysis on the parts inside Samsung’s new, larger S8+ phablet. Samsung’s latest Galaxy S8 features 4GB of RAM and built-in storage of 64GB, which is twice the built-in storage found in the former Galaxy S7.

      Wayne Lam, principal analyst of smartphone electronics for IHS Markit, told eWEEK that the parts value in the latest Samsung S-Series phone line continues a pattern his company has seen since the start—with each iteration increasing the value of parts inside the devices.

      “It’s clearly a strategy by Samsung to pack in all the features and innovations it can into one product,” said Lam. That’s the opposite strategy of major competitor Apple, which has continued to maintain a base iPhone with similar features, parts costs and retail prices throughout the iPhone 5 through iPhone 7 models, he said. “Apple has higher models that cost more but there is always a base model. What you are seeing is Samsung is shifting the market” by replacing its base model Galaxy S phones with higher-priced models that have an increasing number of features for buyers, he added. “With the Galaxy S8, there is no flat screen model anymore” from Samsung.

      The company is “trying to almost intentionally put more daylight between themselves and the rest of the market” by including larger displays and more features “and are trying to lead in that area,” said Lam.

      Samsung is essentially telling buyers that if they want large, quality displays and other features that this is the cost of entry, he added. “I think this is very telling. They have tested this in the market.”

      At the same time, this is good timing for Samsung as the company continues to work to again earn the trust of consumers after last fall’s Note7 smartphone disaster, when the company was forced to recall all of its 2.5 million Note7 smartphones after hundreds of reports of battery fires and explosions around the world.

      “They have a five or six month runway before [the release of] the next iPhone, so they can really capture the attention of the marketplace” with the new S8 handsets, added Lam.

      “I think they led with their best foot forward, with the stretched-out display” and thinner devices, as well as other changes.

      Other features are not as stirring, including the position of the new fingerprint sensor, which is on the back side of the handset, right next to the camera lens, which has received criticism from reviewers and users. Samsung also removed the physical home button from the front of the device and replaced it with a virtual button under the front glass, which is very different from past Galaxy models and will take getting used to by users, he said.

      “They didn’t get everything right,” but the company will make updates later to fix those issues over time, said Lam. “Samsung kind of threw down the gauntlet here and we’ll see what Apple does [with its new phones] in September.”

      Todd R. Weiss
      As a technology journalist covering enterprise IT for more than 15 years, I joined eWEEK.com in September 2014 as the site's senior writer covering all things mobile. I write about smartphones, tablets, laptops, assorted mobile gadgets and services,mobile carriers and much more. I formerly was a staff writer for Computerworld.com from 2000 to 2008 and previously wrote for daily newspapers in eastern Pennsylvania. I'm an avid traveler, motorcyclist, technology lover, cook, reader, tinkerer and mechanic. I drove a yellow taxicab in college and collect toy taxis and taxi business cards from around the world.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×