Re:This is Google’s Nexus 10 by Samsung With Android 4.2
by jsnell on Saturday October 27, 2012 @04:29AM
(#4705730)
Sorry, I thought the discussion was about Nexus devices. The original Galaxy Tab wasn't exactly a cutting-edge device, and it was retailing for a significantly higher price than the iPad. Almost double the price for a long time after the launch. It's hardly surprising that the gross margin was high.
That's a very different case to the much more aggressive pricing used for the Nexus 7 (publically stated to be selling with no margins) and the Galaxy Nexus. And the new Chromebook too, come to think of it. I guess it's possible that they're switching strategies again. So yeah, if these are priced at $600, I'm sure there's a healthy margin on the few units they manage to sell. But until prices are announced, I see little reason to think that there is such a strategy change.
Fortunately for you I generally can show my reasoning on the things I put out there :-) In this case there was data from the Apple vs Samsung trial [1] which if you recall said 775k Galaxy Tab's generated 325M$ in revenue. Doing that math gives you about $448 per tablet in revenue. iSuppli calculated the original Galaxy Tab cost Samsung about $214 to make. That would suggest a gross profit in the neighborhood of $234 per tablet. I was assuming that there was some sort of "OS/License" fee on top of that which is why I didn't suggest it might be as high as $200 each.
[1] "Samsung sold 725,000 units and generated $325 million." - http://news.cnet.com/8301-13579_3-57490740-37/samsung-tablet...
[2] "When the $9.35 manufacturing cost of the Galaxy Tab is added in, the combined materials and production cost amounts to $214.57." - http://www.isuppli.com/Teardowns/News/Pages/Samsung-Galaxy-T...