Friday, August 24, 2012

Latest rivalry between Samsung, Apple: Tablet margins


The tech world's version of the Hatfield and the McCoys has another battleground to slug it out for bragging rights. This time the competition turns on who can turn out a tablet computer with the fatter profit margin.

In their latest product teardown, the folks at IHS Teardown Analysis Service dissected the Galaxy Note 10.1 and found that Samsung could wind up with a better profit margin for its tablet than Apple could on the iPad -- but with one big "if": Samsung will have to be resist the temptation to discount.


A preliminary analysis of the component cost of the Galaxy Note 10.1 reveals the HSPA+ version of the media tablet carries a bill of materials (BOM) of $283. When basic manufacturing costs are added in, the cost to produce the tablet increases to $293. This version sells for approximately $640 in the world market...


For the Wi-Fi-only version of the Galaxy Note 10.1, the BOM is estimated to decline to about $260. U.S. retail pricing for this version has been announced at $499. In comparison, a similarly equipped third-generation new iPad with Wi-Fi and 16GB of NAND flash memory carried a $316 (BOM) at the time of release and a retail price of $499, (so) Samsung will be able to garner a larger margin on the Galaxy Note 10.1 than Apple did for the iPad--on paper.


IHS said in its note that the Galaxy Note 10.1 might turn a decent ... [Read more]



via CNET http://feedproxy.google.com/~r/cnet/NnTv/~3/nHE62KNu8RA/


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