it costs $215 to manufacture, there will be a bit more in distribution and software.
http://www.isuppli.com/Teardowns-Manufacturing-and-Pricing/News/Pages/Samsung-Galaxy-Tab-Carries-$205-Bill-of-Materials-iSuppli-Teardown-Reveals.aspx
that's a resounding yes from me
I saw this earlier and I understand the obscene profit margins are commonplace so I have disregarded it. I think it should have been cheaper definitely. I feel if someone is just in the market for a tablet and isn't really into Android it wouldn't get a second look as it doesn't have any SUPER AMAZING BLEEDING EDGE killer functions to take the shine off the iPad and I don't think it offers enough new things to appeal to a lot of hardcore android followers. Galaxy S having problems certainly hasn't helped.
Market share = excellent hardware + near enough faultless software + 20% lower than apple product
They should have thrown in the Keyboard at this price and maybe Co-Pilot or something
I think the Tab is a LITTLE overpriced, but not monstrously.
The best way to assess this matter is to compare it to its contemporaries, such as the iPad. Now, I won't go in to a full comparison here, but I wil simply say that the Tab does more than the iPad, and yet costs about as much as one.
Not too shabby
I think it should be $100 cheaper ($400 wifi, $500 3G).
But considering the current state of competition, it's no surprise they are charging as much as they are.
Why don't you make is possible to vote for this?
I really don't think it's overpriced. It's a bit cheaper than its immediate rival, the 3G+WiFi iPad, and around here at least, that puts it right in the same ballpark as most of the other newer higher end phones.
The Tab goes for between 900 and 1100$ here in Switzerland, which is almost identical to the prices of the various iPhone 4 models. Galaxy S goes for a bit less (around 100$ less in most places). Considering that the Tab is clearly the most attractive of the available devices, being near the top of the price scale seems justified.
Btw, if google is to be trusted in this matter, it seems the manufactoring costs for the iPhone 4 are around 180$. Again, seems to be comparable.
for it is cheap here in indonesia.. only about us$700 50$ cheaper than galaxy s and 100$ expensiver than iphone4
I got my tab for 650 euros. Similar ipad is 600.
It IS slightly too expensive, but the raw materials cost breakdown doesn't tell the whole story, you also have to consider
R&D
Internal Testing
Manufacturing
Shipping
Support
Local Taxes
Plus a healthy profit (we all want to make some money).
Considering all that, plus that I am happy to support Android vs Apple, I find it slightly too expensive, but not enough to make me change my mind.
Overpriced? Yes. Awesomeley awesome? Also yes.
But it really is a well-built, svelte device i would much rather carry with me than an ipad. Since i take my laptop (timelinex 3820tg) almost everywhere anyway, why would i want a device of similar size?
When the second gen tegra tablets arrive i will certaily get a 10 inch device to have at home. To play with in front of the telly or read papers on the loo. But for now this is the best mobile slate on the market, and i have no reservations about dishing out the $1200 they cost here in russia.
So good is the tab that i have even convinced a hardcore iphoney friend of mine to get one instead of an ipad. Hes over the moon with joy.
In Thailand a 16 GB version is the same price as the Samsung Galaxy S $772.6046 US.
If it was $500 US I would pick one up as soon as it was back in stock, But it seams there is high demand here so why not get as much as you can for you product while you can. We all know there will be a flood of Android devices soon then they will be a dime a dozen just like the apple I phone 3 is here now.
I find it slightly suspicious that iSuppli has decided it costs ~$10 to put the Tab together but hasn't quoted manufacturing costs in the past for other devices, just the price of components.
So, with that in mind, I'm going to base what I say purely on the estimated cost of parts.
So on top of that ~$205 value (which is in itself a rough estimate and may not be accurate), there's the cost of putting it together, distributing it, marketing it, R&D for both hardware and software and then a profit margin because, lets face it, Samsung are not a charity.
And that's just before we reach the price that Samsung are selling it on for, there's a whole extra layer of distribution and marketing costs for individual retailers plus their profit margin as well plus the possibility that there's a distributor between Samsung and the retailer, who will have their own costs and profit margin to add on too.
Comparing the cost of the parts to what we pay is a waste of time.
Comparing the value of the parts and the price we pay to other devices is a slightly better way of rating a product's value - the parts are worth more than the iPhone's but the Tab (here in the UK at least) costs about the same as the 16GB iPhone4 and less than the 32GB one.
What I will say though is that the plans being offered by UK networks for the Tab are a rip-off but that's a separate matter.
Picked up my Tab yesterday from PC World for £499 without contract/SIM, and that's bang on the price point I expected it to ship at. If you view the Tab as essentially a cell phone with a larger screen and battery, I'd say at that price point it comes in pretty favourably when compared to similar cell phones (e.g. Galaxy S, Desire HD etc).
I do love it when you get these teardowns that supposedly calculate the "cost" of a product, but in reality all this is the bill of materials, and fails to take into account everything else involved in designing, developing, sourcing, manufacturing, advertising, distributing, retailing, and supporting a product!
Make no mistake, Samsung will have to sell an awful lot of these to actually turn a profit on the line.
Regards,
Dave
I bought mine from Currys (which is a sister company to PC-World, both owned by Dixons Plc.). It cost 499 GBP/£ with a free voice/data SIM card (and dongle, in my case) on a rolling contract (15 GBP/month, but can be deactivated and restarted at any time). It's expensive, but on a par with other high-end smartphones and tablets.
I will try the 10" Advent Vega tablet when it comes out on November 18 (250 GBP Tegra 2 device), but to be honest I am really pleased with the 7" form factor, which manages to be pocketable whilst offering a touch experience that doesn't hurt my eyes after 10 minutes (unlike small mobile phone displays).
A note about the Galaxy Tab display: there are mixed reviews, some say the view angles, color saturation and crispness are great, others the contrary (they even say there is ghosting due to the slow refresh rate). I think both camps are right: this is clearly not the best display on the touch market (the IPS screen on the iPhone / iPad just looks awesome !), but conversely it is clearly amongst the better ones. The Android firmware offers settings in the configuration panel to adjust the white/black balance and saturation. The manual brightness adjustment also needs to be used to get the best results depending on the environment. As for ghosting: yeah, the fonts sometimes look a little jagged when scrolling screens, but it's really not a big deal at all (it's not perceivable with most apps, to be honest).
I bought mine from currys.co.uk @ £499 through quidco so got a voucher for £25 off plus 3% cashback. So totally I paid £464.
However I still think its a bit (not much) too expensive. If Samsumg could have sold it @ £399 - £429 it would be perceived as much more value for money by the masses. I totally agree with previous poster about the UK networks overcharging for the Tab. Total cost of ownership over a 2yr contract totalling over £1k is taking the piss.
Now for me the Tab ticks all the boxes so even @ £499 I'd still buy it. One complaint I have is that Samsung could have at least thrown in some sort of protective case even it was one of those cheap neoprene type ones.
zen123 said:
Total cost of ownership over a 2yr contract totalling over £1k is taking the piss.
Click to expand...
Click to collapse
That's the networks.
They'll happily subsidise a ~£500 phone down to nothing up-front on a £30-35/month 24 months contract, so why should a tablet cost so much more?
Depends how we look at it...
When my SGS was released, the cheapest I could find for 16gb version was £530
So placing it within the mobile market, which they have done, gives it quite an attractive price point at £500.
However, I was expecting, and still expect to see tablets placed within the laptop market at half the price of this.
i will also pay $1000+ for the rumored galaxy tab 2, especially if it has amoled tech
I currently own the HTC HD2 it cost me £499 but I brought the Samsung Galaxy tab because I am so disappointed with Microsoft’s market place. The tab cost me £475 to buy SIM free. It is an amazing product the screen is bright and big enough to use in all types of environments. I am still finding my way around the product having used only windows mobile phones but Android is easier to use.
The Android market place is fantastic lots of free software to try; I have downloaded several and removed them without crashing the operating system.
The price of Samsung Galaxy Tab is value for money when comparing it with the IPAD and my HTC HD 2 because I now only carry one device instead of two.
I think they priced it as they did so that when they release the next version they can keep the price the same but add SAMOLED, more RAM, and more internal storage...making it a relative bargain.
The price does seem a little high for the current iteration, but it will still sell well because it is a capable device that offers an open approach to media.
peer pressure
If the iphone and other high end phones cost around £500 there is no way they can price a quality item as the tab below those so early.
sadly that is how the market works
Hi all! I want to know what are production costs of Nexus 4 for LG, to make more accurate considerations about its fairness for the final price of this smartphone (Nexus 4 costs €549-599 in all countries where there isn't Google Play Devices: ridiculous).
So...anyone know something?
Thanks
peppe.desire said:
Hi all! I want to know what are production costs of Nexus 4 for LG, to make more accurate considerations about its fairness for the final price of this smartphone (Nexus 4 costs €549-599 in all countries where there isn't Google Play Devices: ridiculous).
So...anyone know something?
Thanks
Click to expand...
Click to collapse
from conzept - to production - to advertisement - to you it will have at first time 1000%....the production isnt that expensiv... price will be at + - 50 € just for the production...
so from conzept to you will be about 10 (min.) businesses who want some money for their work its normal! btw its a brandnew Product
peppe.desire said:
Hi all! I want to know what are production costs of Nexus 4 for LG, to make more accurate considerations about its fairness for the final price of this smartphone (Nexus 4 costs €549-599 in all countries where there isn't Google Play Devices: ridiculous).
So...anyone know something?
Thanks
Click to expand...
Click to collapse
Basically all phones have manufacturing costs in the $200 range.
But of course there are also some onetime R&D costs we know nothing about.
Its not ridiculous, I have an export import business in another industry, but things are mainly the same.
1) They have a phone produced that is bassed on another phone, saving a lot of money in tooling, design etc. Tools can cost millions of dollars and to get your moneys worth you have to produce A LOT of phones. Apple spends a lot on tooling, this is why they have kept their square phones for so long, they need to make their money back. Google doesnt spend much in tooling, mainly because LG has already made this investment, and to them making the Nexus4 doesnt cost them extra.
Note: Other costs include:
- 3rd party components (screen, processor etc)
- Design
- Advertising
- Distribution - Delivery - import duty
2) They are cutting loads of middle men out of the way by selling direct
Here is what a traditional distribution network looks like:
Manufacture(LG) is expected to make 5-10%
Design, R&D trademark, software team etc (Apple, Sony, LG) 10%
Distributor 20%+ (Apple, Sony etc, this goes is where the marketing comes from)
Instore sales (apple store, carephonewarehouse etc) from 30 to 60%
This is a 60-100% markup just in profits alone. If you cut this out like google has, by not making profits in their software, doing their own distribution by selling direct as well as buying a phone that has already developed (Optimus G).
Is google paying us not use their phones? NO, are they making profits? a little.
I used to be a cost accountant for one of the larger Android phone manufacturers, and I can tell you LG cannot be making much (if any) money on this phone.
The standard cost per unit is most likely in the $200-$250 range, but I don't see any way possible the marginal cost per unit could be much under $300.
I'm a big OnePlus fan myself, but I have to question the big price hike for the 8 pro this year, even compared to last years OnePlus 7 Pro.
OnePlus made their name by selling near flagship spec'd phones, but minus some features, and had a near vanilla stock Android UI, and all that for a super budget affordable price. I bought the OnePlus One for $299, and LOVED that phone, at that time flagships like the latest iPhone 6 Plus and Samsung Galaxy were selling for $749.
I get it, that super cheap price wasn't going to last forever with OnePlus, and I expected some creep up in pricing each model, but F me, not $1,000+ now. Sorry but screw that price for a OnePlus phone, or heck any phone for that matter. I think a fair price for the OnePlus 8 Pro should be like in the $699 / $749 range.
Some of their best models and pricing at launch;
OnePlus One was $299/$349 @ launch
OnePlus 3T was $439 @ launch
OnePlus 5T was $499 @ launch
OnePlus 6T was $549 @ launch
OnePlus 7 Pro was $669 @ launch
OnePlus 8 Pro is currently $900+
So it seems each year OnePlus increased the price anywhere from $50 to $100 annually. Lets do the middle which would be $75 per year, so 6 years later that's approx. $450, add that to the $300 price of the original OnePlus One, and that would put the OnePlus 8 Pro @ approx. $750, which to me is fair, not bad. But $1,000 NO WAY.
My question, the 7 Pro was $670 @ launch, now the 8 Pro is $900 @ launch, that's a huge jump up in price between the 7P and 8P, by far their biggest leap in pricing between model years. Because OnePlus have been on an annual trend of $50 to $100 price increases each year, then all of a sudden a massive $225+ increase from last year.
theres alot of things added that upped the price of the phone, 5g , chipset , display , water rating , wireless charge, refresh rate and more. if you think they can just lower the price of the phone whats the point of having a businses if theyre is no profit. at least i can say even they have this profit margin on it its not like iphones price range.
It's all in the marketing...
We always saw OnePlus as offering Flagship killers to compete with the big companies, Apple & Samsung. What better way to gain a following than offer phones that compete with the latest flagships and are priced starkly lower?
OnePlus has just been introduced to the market, relative to the big boy brands. But now they are moving into actually competing with the flagships, it's no longer Apple & Samsung, now OnePlus will be among them. The OnePLus 8 Pro is the company's very first true flagship. It offers things that every OnePlus device to date didn't; Wireless Charging, IP65 water & dust resistance rating, 120hz display, a massive camera upgrade, and of course 5G.
Simply put, OnePlus is moving into its new home, into true flagship territory.
The main thing is the inclusion of the 5G radio on all the models. Qualcomm broke out the radio portion of the chipset into a discrete unit, further adding to the price.
Waterproof
Wireless charging
5G (main reason, separate chip)
Screen
CPU / GPU
It'll stop now, this is their go to price. Won't go much higher.
It's a top of the line phone at the moment with all the latest hi-tech features that brings it over the other top brands and phones.
IP68 and some other certifications for selling officially at west. Because in india and china phone starts from 700USD. With same specs. And oneplus is expanded their business around world this year too much. Thats why they need to collect some money from west this year. And if you are located in US buying oneplus is just idiotical thing. You can get S20+ with snapdragon+mmwave support. But in EU we cannot get snapdragon S20+. Thats why it's sells in here.
I was a user of the Oneplus One and I bought it for € 300 + shipping its 64GB version. It was my everyday phone for 3 years until I sold it and bought myself a sagit. At that time I saw the tendency to raise prices, the price I think I remember increasing by about € 30 and so on, without technological justification. For implanting an nfc chip (value of € 0.0001) the prices increased by € 30 or more. For every euro or dollar that increases in production, they multiply it in an exaggerated way. I calculate that the profit margins on the phones can be 500% or more. In some cases they are creating unnecessary needs to raise prices more and more. They are looking for our limit and want to considerably separate the high, medium and low ranges. The financing of cars, telephones ... etc is being promoted. This matter is long to explain, but basically we users have to plant ourselves before it is too late, I would not like that in 5 or 10 years I will have to mortgage myself to buy a phone just as they are doing with cars. Our best weapon is not to spend more than € 400 and custom ROMs so that the durability of our phone is more than 5 years. Sales have to go down, we have to buy cheaper phones and keep our old phones as best we can. It's the best we can do to make this irreversible (although I think it already is). Long live custom ROMs and their developers, heroes.