Phones
The $1799 Samsung Galaxy Z Fold 4 costs about $670 to make: Report
The prices of smartphones, especially foldables, are skyrocketing these days. You might know about Samsung’s new Galaxy Z Fold 4 which originally costs $1799. You will be surprised to know that this Samsung Galaxy Z Fold 4 smartphone costs only $670 to make.
According to the information from the Japanese news outlet – Nikkei Asia, a teardown of the Samsung Galaxy Z Fold 4 smartphone reveals that the estimated cost of its components accounts for about 40% of the device’s selling price as it costs only about $670 to make.
Follow Sammy Fans on Google News
Samsung has a great profit margin when it comes to foldable. This suggests that profitability has motivated smartphone vendors to create their own foldable smartphones.
Join Sammy Fans on Telegram
Moreover, the Fold 4 teardown reveals a large number of parts made by Samsung, including a flexible OLED display. Samsung is leveraging South Korea-made components for the model, as seen in its local content ratio of around 50%.
On the other hand, Apple, which is often criticized for its aggressive pricing, has low-profit margins on its iPhones. In the same report, Nikkei Asia revealed that the hardware costs of the iPhone 14 Pro Max are about 46% of the final selling price.
The Galaxy Z Fold 4 costs $1799, which is around $500 more than the flagship iPhone. This explains how Samsung is able to offer such cost-effective deals on its most expensive foldable phones.