What ‘cheap build?’ Galaxy S 4 components estimated to cost more than iPhone 5

20 Mar

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Just because something is built with plastic doesn’t necessarily make it cheap to build. The researchers at IHS on Tuesday released their bill of materials (BOM) estimate for the Galaxy S 4 and found that the HSPA+ version has a BOM of $236 while the LTE version has a BOM of $233. When factoring in an $8.50 cost of labor per device, IHS estimates that the HSPA+ Galaxy S 4 costs around $244 to build while the LTE version costs $241 to build. The reason that the LTE version is cheaper, says IHS, is that it uses a less costly processor than the HSPA+ version. As Business Insider’s Steve Kovach notes, IHS’s Galaxy S 4 manufacturing cost estimate is significantly higher than the $207 manufacturing cost estimate the firm had for Apple’s(AAPL) 16GB iPhone 5.

http://www.businessinsider.com/isuppli-says-galaxy-s4-costs-244-to-manufactur…

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