Thus, it is hardly surprising that the Samsung Galaxy Z Fold 4 is one of the most (if not the most) expensive mainstream smartphones out there. But have you ever wondered exactly how much it cost the Korean tech giant to make its flagship foldable? You might be in for a surprise.
According to an article by The Nikkei, a Japanese news outlet, the Samsung Galaxy Z Fold 4 costs about $670 to make. The figure is based on an independent teardown carried out in collaboration with Fomalhaut Techno Solution.
For reference, the Fold 4 boasts an ostentatious price tag of $1799 for its base configuration. This means that the hardware costs account for less than 40% of the final price of the device. By extensions, this implies that Samsung has a rather generous profit margin when it comes to its foldables.
It should be noted that Apple, a company often criticized for its aggressive pricing, could have a lower profit margin on its flagship smartphone – the iPhone 14 Pro Max. In the same article, it is stipulated that the hardware costs of the latter are about 46% of the final selling price.
In essence, this means that Samsung’s foldables could be more profitable than Apple’s high-end iPhone. Nevertheless, these figures do not account for things like expenses on R&D (research and development). Hardware expenses are just one side of the equation. And the fact that Apple sells an outrageous number of iPhones.
However, this explains why Samsung has been able to offer such lucrative deals on its most expensive foldable. For a moment, it seemed like it was operating at a loss.