Did you know – Samsung Galaxy Note 3 costs much less to build that what it’s sold for!

Jasmina Lozevska October 4, 2013 0


We have some interesting news about the Samsung Galaxy Note 3, the next-gen Android based flagship phablet from the Korean manufacturer. A recent study indicates that the Galaxy Note 3 costs just $240 to build!
Samsung recently unveiled the Galaxy Note 3 phablet at a special event that took place on the 4th of September. And if you have not already checked out the pricing for the device, the unlocked and SIM-free version of Galaxy Note 3 has been priced at $xx whereas the subsidized price of the device is $299 along with a two-year contract.

note 3
But have you ever wondered how much does Samsung has to spend in order to make the Galaxy Note 3 handset? Well, we have always been doing that and thanks to a recent study we have a good idea about how much it actually costs to make the Galaxy Note 3 – $240 (yes, we already mentioned this before).
Now $240 might seems to be a good number, but you will be surprised to know that the phablet costs just $20 more than the production cost of the Galaxy Note 2. With the advances in technology, Samsung was able to put in a much better display, higher performance camera, extra RAM and a much faster processor, all for the extra $20.
But now let’s face facts – if the Galaxy Note 3 does cost around $240 to $250 to build, then Samsung is doing a bad job on the pricing of the device (at least from the consumer point of view). We know that the company already has a lot of expenses to take care of, but the prices still do not seem to be justifiable.
And before you start blaming Samsung for the high price, you should know that there are a number of other manufacturers that follow the same strategy. For example, even the Apple iPhone 5S has been priced way higher compared to the total cost Apple has to spend for production.

samsung price chart
With prices this high, next-gen smartphones like the Samsung Galaxy Note 3 and the Apple iPhone 5S are way out of reach for entry and mid-segment consumers. But this is where Chinese manufacturers like Huawei and other can capitalize. Their smartphones might not be as great as the ones made by Samsung and Apple, but they definitely get the job done and that too very well.
Lastly, you should note that this post was not intended to take you away from the Galaxy Note 3 or iPhone 5S. We just want you to think a little before spending your hard earned money on the devices that you are going to use everyday.

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