Samsung Galaxy Tab Costs Only $205 To Manufacture

The Samsung Galaxy Tab is a big smartphone rather than a tablet according to a teardown carried out by hardware research firm, iSuppli.

The GT-P1000, as it is known, is just a bigger version of the popular Galaxy S with a screen roughly three times the size of its smaller brother.

iSuppli says that each Tab costs $205.22 in components to which $9.35 must be added for manufacturing expenses. In comparison, the 16GB 3G Apple iPad carried an estimated BOM of $264.27.

At $57, the capacitive touchscreen of the Galaxy Tab is its most expensive part and accounts for more than a quarter of the cost of production. Yet it is still cheaper than the iPad's $98.

Next come memory and storage; 16GB of MLC flash memory, 8 Gb of MCL NAND flash, 4Gb of DDR RAM, and a Gb of OneDRAM have a combined price of $51.

iSuppli also found out that the Galaxy Tab used the same applications processor (a 1GHz Samsung Hummingbird one) and the same baseband processor (from Infineon Technologies) as the Galaxy S.

Like Apple, Samsung is using economies of scale to bring down the cost of the Galaxy Tab and enjoy bigger margins on each product sold.