Galaxy S5: 699/799? Forget it

[Soundtrack to Chaos]

Samsung has a 20% operating margin, so let's say that they break even, that would be $520($650 x. 8). Now Motorola has a 26% operating loss, so $385($520 x. 74).

I realize that there is more to this than that - Samsung could reduce its advertising and other cost cutting, but one could argue without advertising, they won't be as big as they are now.

Really, I don't see a high end smartphone at $350ish on release on a company that plans to profit from hardware sales , unless something drastically changes.


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dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro

Remember that phones sell for alot more than what they cost. I believe the gs4 or 3 cost $218 to make but sold for above 600.

Wish I could find the article

 

[Aquila]

Remember that phones sell for alot more than what they cost. I believe the gs4 or 3 cost $218 to make but sold for above 600.

Wish I could find the article

http://forums.androidcentral.com/sa...3-galaxy-s5-699-799-forget-4.html#post3526285

Here are the numbers for a few recent flagships.

 

[dpham00]

Remember that phones sell for alot more than what they cost. I believe the gs4 or 3 cost $218 to make but sold for above 600.

Wish I could find the article

Sure, no doubt that is bom. If all it was was bom then Samsung should be having 300% operating margin, not 20%.

bom doesn't take into account profit, marketing, engineering, overhead, retailer profit, licensing , legal team, etc.

I used to work for a manufacturing company, and they would resell something they bought at 3x the price. I was shocked when found out, but it is how businesses are run, there are a lot of costs involved




dpham00, Android Central Moderator
Sent from my Verizon Samsung Galaxy Note 3 via Tapatalk Pro