Samsung launched the Galaxy Z Fold 4 at an exorbitant price of $1,799.99, so it didn’t make sense that the material cost would be high for the company to make a single unit. A new analysis compares the foldable flagship against the iPhone 14 Pro Max and in terms of hardware costs, there isn’t much difference, especially with what Samsung offers customers.
The new data reveals that Samsung must pay $670 to make a single Galaxy Z Fold 4 unit
Fomalhaut Techno Solutions, a company based in Taiwan, provided a breakdown of component costs for the Galaxy Z Fold 4. Analysis revealed that each of these devices cost Samsung $670 to make, with ITHome reporting that the bill of materials is less than 40 percent of the selling price.
On the other hand, Apple costs $501 for the iPhone 14 Pro Max, with the figure accounting for 46 percent of the total selling price. While the 33 percent material cost differential is massive, part of the reason Samsung has narrowed the gap is because components are mass-produced by the Korean giant itself, making its supply chain more reliable and less expensive.
For the iPhone 14 Pro Max, the cost of making it 20 percent more expensive than its direct predecessor, the iPhone 13 Pro Max, was due to the price of the A16 Bionic, with each unit costing the company $110 when getting it from TSMC. This makes the A16 Bionic twice as expensive as the A15 Bionic, and things aren’t getting any cheaper in 2023.
Even Samsung is expected to feel the price hike, as the Snapdragon 8 Gen 2 powering the upcoming Galaxy S23 series will likely be found in the Galaxy Z Fold 5 and Galaxy Z Flip 5. The chipset is mass-produced on TSMC’s 4nm process, the same The thing used in the A16 Bionic, so naturally it costs more to Qualcomm, which will pass these price increases on to Samsung.
Until then, Apple could be paying more for the A17 Bionic intended for the iPhone 15 Pro and iPhone 15 Ultra, as its next-generation SoC is said to be made on TSMC’s cutting-edge 3nm architecture. With TSMC rumored to increase chip prices beyond the $20,000 threshold, making the top-tier iPhone 15 models could be more expensive than the Galaxy Z Fold 5.
If so, we’ll provide more comparisons, but only when additional analyzes like this are published, so stay tuned.