Samsung Galaxy Tab Costs Less To Make Than Rival IPad
Samsung Electronics Co.'s (SSNHY, 005930.SE) Galaxy Tab's combined materials and production costs total $214.57, according to a breakdown by iSuppli, costing "significantly less" than the technology researcher's estimate for the 3G version of the rival iPad.
ISuppli said the reduced cost is largely the result of Galaxy's smaller and lower resolution display when compared with Apple Inc.'s (AAPL) blockbuster tablet, the iPad, which costs an estimated $264.27 to manufacture.
"Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is [a] larger version of Samsung's Galaxy 5 smartphone," said Andrew Rassweiler, principal analyst for iSuppli. He said while the Galaxy is less expensive to produce than the iPad 3G, it also makes for a product that "lacks the same usability."
The Galaxy's screen resolution, size and technology are not at the same level as the iPad, a "critical difference," according to Rassweiler
Still, the device does contain some features not found in the iPad, including a gyroscopic Microelectromechanical Systems sensor, likely for use in gaming.
ISuppli estimates the cost of the display/touch subsystem in the Galaxy costs $57; making it the most expensive component of the device, although less than the iPad's $98. That component was followed by the memory subsystem, which cost $51, while numerous mechanical and electromechanical components costs $15.22.
Last week, Sprint Nextel Corp. (S) announced it planned to sell the Galaxy for a third less than rival Verizon Wireless, saying it would sell the device for $399.99 in exchange for a two-year commitment to a data service plan. Verizon Wireless--a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD, VOD.LN)--had said it would sell the device for $599.99, but offered a prepaid data plan without the requirement of a contract. Both will begin selling the device later this month. -By John Kell
ISuppli said the reduced cost is largely the result of Galaxy's smaller and lower resolution display when compared with Apple Inc.'s (AAPL) blockbuster tablet, the iPad, which costs an estimated $264.27 to manufacture.
"Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is [a] larger version of Samsung's Galaxy 5 smartphone," said Andrew Rassweiler, principal analyst for iSuppli. He said while the Galaxy is less expensive to produce than the iPad 3G, it also makes for a product that "lacks the same usability."
The Galaxy's screen resolution, size and technology are not at the same level as the iPad, a "critical difference," according to Rassweiler
Still, the device does contain some features not found in the iPad, including a gyroscopic Microelectromechanical Systems sensor, likely for use in gaming.
ISuppli estimates the cost of the display/touch subsystem in the Galaxy costs $57; making it the most expensive component of the device, although less than the iPad's $98. That component was followed by the memory subsystem, which cost $51, while numerous mechanical and electromechanical components costs $15.22.
Last week, Sprint Nextel Corp. (S) announced it planned to sell the Galaxy for a third less than rival Verizon Wireless, saying it would sell the device for $399.99 in exchange for a two-year commitment to a data service plan. Verizon Wireless--a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD, VOD.LN)--had said it would sell the device for $599.99, but offered a prepaid data plan without the requirement of a contract. Both will begin selling the device later this month. -By John Kell
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