Samsung’s hotly anticipated iPad challenger, the Galaxy Tab, is said to cost only $205.22 to manufacture, according to analysts at iSuppli.
The hardware research firm tore into Galaxy Tab to come up with the total cost of parts and components, which add up to $205.22, plus $9.35 extra for manufacturing expenses. To put it into context, the bill of materials (BOM) for the Tab’s closest equivalent, the 16GB 3G iPad, is $264.27, roughly £164.
The most expensive component is the seven-inch touchscreen panel, running down Big Sam nearly a quarter of the expenses at $57 (£35). Only the 16GB onboard memory comes close at $51 (£31).
Surprisingly enough, the two front and rear-facing cameras in the Tab costs only $7.95 (£5), which begs the question why Apple was unable to pack the iPad with its own cameras.
Call us conspiracy nuts but we can’t help but think Apple deliberately held back the feature only so it can release a slightly upgraded version of the iPad next summer and make another 20-gazillion dollars.
There’s obviously no getting away from the fact that the Tab itself is quite an expensive option considering it’s retailing for no less than £530 a pop, giving Samsung an obscenely fat margin of profit.
It makes great business sense, too, as one of the main reasons why Apple is so profitable is not because it makes attractive products, but products that cost peanuts to make in comparison to the price they are actually sold for.
Samsung is using the same economies of scale to price the Tab but one would think that a more competitive price point would have been more advantageous in convincing still undecided consumers, especially when going up against the single most successful tablet currently in the market.