Profit Margin Strategery

Overall, research firm IHS pegged the cost of a 64-gigabyte Galaxy S6 Edge at $290.45, once the manufacturing costs and the bill of materials — everything from the display panel to the processor, memory chips and camera — are factored in. That’s the most expensive flagship smartphone that Samsung has ever made.

While the $799.99 retail selling price for that device leaves plenty of room for Samsung to make money, IHS notes that Apple’s comparable iPhone 6 Plus with 64 gigabytes of memory costs about $50 less to manufacture — and retails for $50 more — than Samsung’s device.

Read more “Samsung Takes a Cue from Apple on Profit Margins” at the WSJ.D

Interesting that Apple moves customers up a storage tier by eliminating the 32MB option, while Samsung has kept the 32MB and made it the new baseline by eliminating the 16MB option. Both are smart moves, but based on the above, the 64MB iPhone clearly fills the coffers more than a 32MB S6, while also being psychologically more satisfying for the consumer (4x the memory for just a 100 more bucks).