On March 14, 2012, Samsung launched the flagship smartphone Galaxy S4, and then Samsung S4 became a hit, all the major websites on the line and the streets and lanes. At present, all the information parameters about this flagship model are available, but the price is lacking. The industry estimates it is around $579.
Not to mention that the valuation is not reliable, market research company IHS iSuppli has given the HSPA and LTE network versions according to the hardware components of the Galaxy S4 and the supply chain information they have acquired (that is, the Exynos "eight cores" version and Hardware cost estimate for the Dragon 600 quad core version).
The material cost of the memory, camera module, box, etc. is carefully listed in the list, which is accurate to each screw. The Samsung S4 Exynos "eight-core" version of the bill of materials price is 236 US dollars (1,500 yuan), the Snapdragon 600 quad-core version of the Samsung S4 bill of materials price is 233 US dollars (1450 yuan).
Exposure BOM (Bill of Materials), Source: IHS iSuppli
The exposed BOM (bill of materials) includes memory, display, processor, camera, wireless module, power management, battery, motor and box.
As a reference, the Samsung Galaxy S3 with quad-core Exynos processor has a BOM price of about $205.
Compared with the S3, the hardware cost of each part of the S4 is not very different. The main difference is the 5-inch 1080p screen and the adoption of the third-generation Corning Gorilla Glass, which increases the cost of the screen, whether it is Exynos "eight cores" or The cost of the Snapdragon 600 quad core is also higher than the previous Exynos quad core. The baseband chip has a small difference in cost due to the difference in network support. The rest of the population has changed little overall.
However, the pricing of a mobile phone is not determined solely by the BOM. From the early research and development, to the later publicity to the transportation cost in the sales process, it also accounts for a large proportion. In particular, the software innovation brought by S4 is far greater than the hardware, so it is temporarily impossible to judge the final price of the real machine.
Source:IT168
Source:IT168
Among them, key components such as processors and displays are supplied by Samsung's business unit at a cost of US$149, accounting for 63% of the total cost. In other words, only 37% of the parts of this phone are supplied by other companies.
From Apple to ZTE, from Nokia to Motorola Mobility, no smartphone has more self-sufficiency in parts than Samsung. The ability to produce its own mobile phone parts is precisely the reason why this Korean electronics giant has succeeded in the mobile industry. Since the key components of the Galaxy S4, such as the processor, display and power management unit, are produced by Samsung itself, the final assembled product will be different from the competition. This is not only helpful for brand promotion, but also for the work of engineers involved in finished product design.
Take the HSPA version of the Galaxy S4 as an example. It uses Samsung's own Exynos 5 Octa eight-core processor and has two modes of operation to save energy. When the background of the Galaxy S4 runs such as eyeball scrolling, or waiting for the user to issue a voice command, the Exynos 5 Octa processor will only start the A7 architecture core with lower power consumption; however, once you start playing a large game, the A15 quad-core CPU will Run at full speed.
Wayne Lam, senior analyst at IHS, said: "This is a new way of doing business." Compared to other companies, Samsung software engineers have a certain advantage, they can know the hybrid processor in advance. When to start the phone, write code for software that handles different levels of CPU activity, or switch between the two processors.
Strengthen coordination
Ram said: "If engineers know that these parts will be used in the finished product, they can start planning and innovating on the software. Since we have this extra processing power, why not try it?" For marketing purposes In consideration, Samsung will not publicly say that the Galaxy S4 mobile phone with its own processor is more efficient than the LTE version using Qualcomm Snapdragon processor. But Ram believes that when users use the unique features of the Galaxy S4's eye control, Samsung's own platform consumes less energy.
Samsung launched the Galaxy S4 in New York last week and saw intuitive, user-friendly software as a core feature of the smartphone. Ram said: "Hardware performance is one thing, software is another." He is currently researching Samsung's Exynos 5 eight-core processor, how high the customization of the Galaxy S4, "although the outside world is not yet Determine if they have optimized the code to take advantage of low energy consumption, but I think they are doing it."
All this is again thanks to Samsung's ability to achieve self-sufficiency in important parts. Thanks to the coordination between different departments, Samsung is able to bring products to market faster than its competitors. In contrast, competitors are faced with the shortage of parts and components. It is precisely because of this problem that HTC delayed the release of the new flagship mobile phone HTC One.
Charles Golvin, principal analyst at market research firm Forrester Research, points out that the biggest advantage of parts self-sufficiency is innovation. He said: "For Samsung, functional innovation and control is actually more important than price advantage. In today's mobile phone market, flagship products must be greatly innovative in function, while having a new experience, especially in the face For an opponent like Apple, this advantage will manifest itself over time."
Disadvantages
Of course, everything has advantages and disadvantages. If Samsung is its best customer in terms of processor supply, then this will put a burden on the mobile device division to maintain its market dominance. Ram said: "We have seen that some component customers have begun to cut Samsung orders, and Apple is the most typical case."
Interestingly, Samsung re-adjusted its management structure last week and appointed JK Shin, president of the mobile communications division, as co-CEO. Currently, Samsung has three CEOs, the other two are Boo-keun Yoon, who is in charge of television and consumer electronics, and Oh-Hyun Kwon, vice chairman.
As Samsung brings all kinds of devices into the Internet era, Samsung's various departments also need to strengthen collaboration to better adapt to the development of the times. In fact, it was during the helm of Shen Zongjun that the mobile communications department helped Samsung quickly create innovative products such as the Galaxy S4.
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