Galaxy Tab costs $205 in parts, Samsung to sell 1 million units

By on November 5, 2010, 5:23 PM
The Samsung Galaxy Tab has a Bill of Materials (BOM) of $205.22, compared to the $264.27 for a 16GB 3G iPad, according to iSuppli. When the $9.35 manufacturing cost of the Galaxy Tab is added in, the combined materials and production cost amounts to $214.57.

It's important to remember that the BOM estimate doesn't include various extra costs such as marketing, research, and other factors that might lead to tighter margins. You should pick your device based on the features you want, rather than how much money you think the company will make from your purchase.

Many believed the Galaxy Tab had such a high price point because of its front and back cameras, but it turns out that these parts cost just $7.95 combined. The processor is ridiculously cheap at $8.84, while Apple spends $26 on its A4 chip, though Samsung is likely getting a discount there. Furthermore, the Galaxy's seven-inch display costs just $57, while the iPad's ten-inch panel goes for about $95. Apart from that, the two devices don't differ too much in terms of their innards.

In related news, Samsung expects to ship 1 million units of the device by the end of this year. "Although the launching of Galaxy Tab has been delayed a little bit (in Korea), consumer responses in Europe and Asia have been quite good and e are confident of meeting one million sales mark this year," JK Shin, head of Samsung's mobile division told reporters after launching the tablet in Korea, according to Reuters.

The sales estimate short of Apple's iPad, which is currently dominating the tablet space with 95.5 percent market share in the previous quarter. Apple shipped 1 million of the iOS tablets in the first 28 days after launch. Samsung is planning to launch more Android tablets (with AMOLED screens, according to Gizmodo) next year.





User Comments: 10

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TeamworkGuy2 said:

Pretty cool to see the brake down of parts for a tablet (the galaxy tab is a tablet, right?).

Also interesting to see just how close the price of this tablet compares to the 3G iPad.

IAMTHESTIG said:

So what is a reasonable asking price for one of these then? I understand they need to pay for R&D they put into it, advertising, assembly, packaging and shipping, etc. and a little profit (because your a business, your in business to make money) in the end, but I can't imagine in the end that is worth $600+

vangrat said:

IAMTHESTIG said:

So what is a reasonable asking price for one of these then? I understand they need to pay for R&D they put into it, advertising, assembly, packaging and shipping, etc. and a little profit (because your a business, your in business to make money) in the end, but I can't imagine in the end that is worth $600+

Heya

Get this, if you really want a shocker. The AUD and the USD are at Parity at the moment, and yet in Australia this is going for, $999 .... Can you say highway robbery?

Puiu Puiu said:

It's going to be same as it was with the PS3. Very expensive at lunch and in a few years the price will drop to incredibly low prices. (all except the IPAD which will continue to cost too much)

thedrelle said:

You have to expect them to turn a profit on these things, and that doesn't change down the line either. as the price drops, so does the cost to produce them.

ET3D, TechSpot Paladin, said:

I think they will ask for what they think the market can sustain. Once all the early adopters shell the big bucks, the price will drop.

dlen said:

I saw it yesterday in a shop. I wasn't impressed. The screen looks very blur and colours are faded.

AbsolutGaloot said:

I'm pleased to see that there are companies at least trying to compete with apple, but they seem more of "just good enough to get in on this thing" rather than "do it better"

jazboy said:

Apple will be still the leader on tablet market.

ruzveh said:

Pretty cool analysis. We would like to see similar spec at below $300. Possible no?

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