New Samsung smartphone is the first shipping in volume capable
of gigabit-LTE speeds; aims to restore consumer confidence
following Note 7 challenges
The new Samsung Galaxy S8 equipped with 64 gigabytes (GB) of
NAND flash memory carries a bill of materials (BOM) cost that comes
out to US$301.60, much higher than for previous versions of the
company’s smartphones, according to a preliminary estimate from IHS
Markit (Nasdaq: INFO), a world leader in critical information,
analytics and solutions.
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IHS Markit teardown of Galaxy S8
Materials (Photo: Business Wire)
After $5.90 in basic manufacturing costs are added, Samsung’s
total cost to make the Galaxy S8 rises to $307.50; the unsubsidized
price for a 64GB Galaxy S8 starts at around $720. The preliminary
estimated total at this point is $43.34 higher than that of the
Galaxy S7 previously performed by IHS Markit, and is $36.29 higher
than the total build cost of the Galaxy S7 Edge, considered a
better comparison to the Galaxy S8. IHS Markit has not yet
performed a teardown analysis on the larger Galaxy S8 Plus.
“The higher total BOM costs for the Galaxy S8 seem to be part of
a trend that reflects something of an arms race in features among
Apple, Samsung and other phone manufacturers, as they all try to
add new and distinguishing hardware features,” said Andrew
Rassweiler, senior director of cost benchmarking services for IHS
Markit. “While there are new non-hardware features in the Galaxy
S8, such as a virtual assistant called Bixby, from a teardown
perspective the hardware in the Galaxy S8 and that of the
forthcoming new iPhone is expected to be very similar.”
The introduction of the Galaxy S8 comes at a delicate time for
the embattled South Korean electronics giant, which is eager to put
behind the challenges associated with the Galaxy Note 7, whose
exploding batteries prompted a worldwide recall.
The latest salvo from Samsung shows how it’s keen to regain
consumer confidence and attain leadership in the smartphone
landscape, a nearly saturated but still highly competitive space
that remains key to retaining subscriber loyalties and winning new
converts.
First smartphone capable of gigabit-LTE speeds
Both the Galaxy S8 and S8 Plus feature a 10-nanometer (nm)
system-on-chip (SoC) along with CAT-16 LTE modem and radio. The
CDMA version of the S8, intended for use in the United States as
well as in China, will feature the Snapdragon 835 chipset from San
Diego-based Qualcomm. In comparison, a version of the phone
featuring Samsung’s homegrown Exynos 8895 chipset will be used for
the rest of the world.
The CAT-16 LTE radio allows the new Galaxy phone to aggregate
three carriers of up to 20 megahertz each. Combined with 4x4 MIMO
antennas and higher-order modulation of 256 QAM, the LTE modem is
capable of reaching peak theoretical speeds of one gigabit per
second. “Gigabit LTE is very much the marquee specification for
2017 flagship smartphones,” said Wayne Lam, principal analyst of
smartphone electronics, IHS Markit. “Keep in mind that gigabit
speeds are a best-case scenario and that a user’s real-world
experience will be limited to what mobile networks can
provide.”
New “Infinity Display” design fits better in hand
The redesigned Galaxy S8 has a tall, narrow shape that is 1.5
millimeters narrower than the previous Galaxy S7, providing slick
new ergonomics while also optimizing screen real estate. The screen
curves around the edges, and Samsung designers have maximized the
display, relative to the size of the phone, with a 5.8-inch
2960x1440 AMOLED display and an elongated aspect ratio of 18.5:9.
Compared to conventional 16:9 aspect-ratio Quad HD smartphone
displays, the Galaxy S8 features an additional 15 percent more
pixels in a form factor that is easier to hold in the hand. The
device’s haptic engine, which provides the “click” feel for users,
also has been improved for longer-duty cycles and a more dynamic
response.
Double the base-model storage
Both the Galaxy S8 and S8 Plus feature 4GB of RAM and built-in
storage of 64GB—twice the standard built-in storage found in the
Galaxy S7 as well as the iPhone 7. Storage for the new Samsung
phones can also be expanded, up to 256GB, via a microSD card. The
Samsung NAND flash memory and DRAM on the S8 come in at a cost of
$41.50. Rassweiler said: “While in previous years the cost per
gigabyte has generally fallen in both the NAND flash and DRAM
areas, we have seen rising prices in both DRAM and NAND flash
recently due to some tightness in the marketplace. The cost of
memory in the S8 reflects these recent market dynamics, even though
we expect the erosion in memory pricing—something that occurs
regularly in the memory market—to resume during the course of the
year.”
Battery
The battery capacity on the Galaxy S8, at 3000 milliamp hour
(mAh), is the same as that found in last year’s Galaxy S7. However,
compared to the Galaxy S7 Edge, which had a 3600mAh battery,
Samsung played it safe after the Note 7 incident and included a
considerably less dense battery pack. Overall cost estimate for the
Galaxy S8 battery pack is $4.50.
Single camera lens
Although the Galaxy S8 and S8 Plus come with new features and
the latest components, each still has only a single camera in the
back—essentially the same as the camera module found in last year’s
Galaxy S7. Apple’s iPhone 7 Plus, the newly launched LG G6 and many
Chinese OEMs are now promoting dual cameras as a key feature. Owing
to the asymmetric placement of the rear fingerprint sensor, it
would have been likely that a dual-camera design was scrapped at
the last minute in the design cycle.
For more early observations, visit the IHS Markit Technology
blog section, or jump directly to this IHS Markit blog post:
Samsung touts powerful new features with Galaxy S8.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and expertise for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key business
and government customers, including 85 percent of the Fortune
Global 500 and the world's leading financial institutions.
Headquartered in London, IHS Markit is committed to sustainable,
profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All
other company and product names may be trademarks of their
respective owners © 2017 IHS Markit Ltd. All rights reserved.
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IHS MarkitAnnette Hamilton,
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+1-303-305-8021press@ihs.comFollow @IHS_News
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