November 2, 2010

The Galaxy Tab actually cost’s about $214 to make, so where does the remaining $300 go?

by Shayne Rana

We know that the Galaxy Tab is smaller than the almighty iPad but it does come with more features at a lower price point. The Tab’s available at about $500 while the 16GB 3G iPad retails for $629. But the big question has always been, why does a device cost so much if manufacturing costs are so damn low. For instance, the front and rear cameras that the Tab comes loaded with, together would work out to about $8 and the 7 inch display is about $57. Together with the rest of the components and manufacturing costs, the Tab amounts to about $214, according to iSuppli’s break up. That’s almost a whole $300 profit for Samsung. But another source does make a valid point, the extra cash you shell out for the device goes in costs like advertising, packaging and let’s not forget marketing, research and other such non-physical components. Either ways, I still think it’s a bit hefty on the price tag and it could use a bit of a slim down.
Ubergizmo