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.
