Smartphone making cost aren't actually that much…but there are several factors to account for.
Firstly: The basic and most simple one reason is the Brand Value itself. Like if you compare Samsung and One Plus. The Galaxy S7 Edge by Samsung costs almost 700dollars while One Plus 3 costs roughly 400 dollar though they have identical specs. So, that extra profit just goes for name of the company. So a brand name can increase value by 200%.
Secondly: There is a big portion of money around 30% has to be paid to the R&D(Research and Development) division.
Thirdly: The phone before reaching to the retailers get handed to various stages of business like Stocker, Whole seller…and many more…everybody adds 5–10% of their profit.
Fourthly: Marketing is a big part where the money goes. Those all TV commercials you see of new Samsung or HTC phones are included in your phone's value. And if they do promotional activities like hiring stars…that’s an extra investment.
So, after all these…suppose if a phone took 60dollars to be made ..it will retail for as high as 300dollars…that’s 5times more! That's what happens everywhere. Even an Iphone costs 200dollars to make, yet they retails for as high as 900dollars! So, here you go…the reason(s) why smartphones are so expensive!
Smartphone making cost aren't actually that much…but there are several factors to account for.
Firstly: The basic and most simple one reason is the Brand Value itself. Like if you compare Samsung and One Plus. The Galaxy S7 Edge by Samsung costs almost 700dollars while One Plus 3 costs roughly 400 dollar though they have identical specs. So, that extra profit just goes for name of the company. So a brand name can increase value by 200%.
Secondly: There is a big portion of money around 30% has to be paid to the R&D(Research and Development) division.
Thirdly: The phone before reaching to the retailers get handed to various stages of business like Stocker, Whole seller…and many more…everybody adds 5–10% of their profit.
Fourthly: Marketing is a big part where the money goes. Those all TV commercials you see of new Samsung or HTC phones are included in your phone's value. And if they do promotional activities like hiring stars…that’s an extra investment.
So, after all these…suppose if a phone took 60dollars to be made ..it will retail for as high as 300dollars…that’s 5times more! That's what happens everywhere. Even an Iphone costs 200dollars to make, yet they retails for as high as 900dollars! So, here you go…the reason(s) why smartphones are so expensive!
Smartphone making cost aren't actually that much…but there are several factors to account for.
Firstly: The basic and most simple one reason is the Brand Value itself. Like if you compare Samsung and One Plus. The Galaxy S7 Edge by Samsung costs almost 700dollars while One Plus 3 costs roughly 400 dollar though they have identical specs. So, that extra profit just goes for name of the company. So a brand name can increase value by 200%.
Secondly: There is a big portion of money around 30% has to be paid to the R&D(Research and Development) division.
Thirdly: The phone before reaching to the retailers get handed to various stages of business like Stocker, Whole seller…and many more…everybody adds 5–10% of their profit.
Fourthly: Marketing is a big part where the money goes. Those all TV commercials you see of new Samsung or HTC phones are included in your phone's value. And if they do promotional activities like hiring stars…that’s an extra investment.
So, after all these…suppose if a phone took 60dollars to be made ..it will retail for as high as 300dollars…that’s 5times more! That's what happens everywhere. Even an Iphone costs 200dollars to make, yet they retails for as high as 900dollars! So, here you go…the reason(s) why smartphones are so expensive!