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eewiz
Yet samsung has a display with similar pixel density(320ish) as iPhone(330ish) ...
C VanDorne
When technical humor is done right it is just hilarious. Well done, my friend. ...
Teardown: Samsung tablet could have higher margin than iPad
Dylan McGrath
8/27/2012 6:39 PM EDT
Hybrid touch scree
One feature that the iPad does not have that the Galaxy Note 10.1 possesses is the hybrid touch screen, which features not only conventional capacitive touch sensing, but also gives users the option of using a Wacom digitizer pen, IHS said. Wacom's pen is passive: it requires no battery or power source, or cords—like a mouse—but works using inductive pen sensing, IHS said. Essentially one can use the Galaxy note to write on, but still utilize it as a conventional touch tablet, the firm said.
Samsung supplied its own battery pack for the Galaxy Note 10.1, which features higher-than-average energy density for a Li-Polymer battery pack at about 520Wh/L energy density, compared to the typical 450Wh/L for Li-Polymer, IHS said.
Although the IHS iSuppli teardown analysis service BOM numbers might lead some to conclude that Samsung stands to make about 50 points of margin on this Galaxy Note 10.1, there are more cost pieces to this puzzle than materials and manufacturing costs, IHS said. The firm notes that its BOM estimates s do not include non-material and other expenses, such as software and development. Once these additional costs are factored in, what might appear to produce a massive margin for Apple and Samsung is somewhat smaller, IHS said. Based on its BOM estimates and expected retail prices, IHS said Samsung may be able to yield slightly better margins per unit than Apple on this product.
IHS noted that court documents from the recent Apple-Samsung patent litigation in San Jose, Calif. revealed that Apple's gross margins for the iPad are not nearly as high as those for its iPhone.
A jury in the high-profile patent infringement case last week awarded Apple damages of $1.049 billion plus a verdict of willful infringement on many counts. The willfulness verdict opens the door to the judge awarding punitive damages of as much as three times the already record amount set by the jury.
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One feature that the iPad does not have that the Galaxy Note 10.1 possesses is the hybrid touch screen, which features not only conventional capacitive touch sensing, but also gives users the option of using a Wacom digitizer pen, IHS said. Wacom's pen is passive: it requires no battery or power source, or cords—like a mouse—but works using inductive pen sensing, IHS said. Essentially one can use the Galaxy note to write on, but still utilize it as a conventional touch tablet, the firm said.
Samsung supplied its own battery pack for the Galaxy Note 10.1, which features higher-than-average energy density for a Li-Polymer battery pack at about 520Wh/L energy density, compared to the typical 450Wh/L for Li-Polymer, IHS said.
Although the IHS iSuppli teardown analysis service BOM numbers might lead some to conclude that Samsung stands to make about 50 points of margin on this Galaxy Note 10.1, there are more cost pieces to this puzzle than materials and manufacturing costs, IHS said. The firm notes that its BOM estimates s do not include non-material and other expenses, such as software and development. Once these additional costs are factored in, what might appear to produce a massive margin for Apple and Samsung is somewhat smaller, IHS said. Based on its BOM estimates and expected retail prices, IHS said Samsung may be able to yield slightly better margins per unit than Apple on this product.
IHS noted that court documents from the recent Apple-Samsung patent litigation in San Jose, Calif. revealed that Apple's gross margins for the iPad are not nearly as high as those for its iPhone.
A jury in the high-profile patent infringement case last week awarded Apple damages of $1.049 billion plus a verdict of willful infringement on many counts. The willfulness verdict opens the door to the judge awarding punitive damages of as much as three times the already record amount set by the jury.
Click on image to enlarge.
Related stories:
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joepaiii
8/27/2012 7:53 PM EDT
Well it is a rectangular touch screen device so stealing those innovations from Apple had to save Samsung some money. So of course their margins will be better than Apples. Add the fact that they weren't dumb enough to put a display in it that exceeds all reasonable visual acuity requirements from normal viewing distances and Samsung is bound to make some money on it... to pay the damages back to Apple. Makes me sick.
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C VanDorne
8/29/2012 11:51 AM EDT
When technical humor is done right it is just hilarious. Well done, my friend. Well done.
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eewiz
8/29/2012 11:20 PM EDT
Yet samsung has a display with similar pixel density(320ish) as iPhone(330ish) on their phones!! iPad display density is even lower at ~260. I guess the reason they havent had such a display is that Android drains battery quickly(my Galaxy s3 drains to 20% in like 12-15 hours)
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hm
8/27/2012 8:19 PM EDT
Samsung Tablets are good if they spend same money for innovation and research as Apple. If not, it is simple copy with little respect for innovation.
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SiliconAsia
8/27/2012 10:28 PM EDT
Samsung has bigger R&D budget than Apple. Also Samsung makes all the components in scale so it's natural they have the lowest cost structure. Have you wondered why Apple buys $8B worth of components from Samsung? It's because they can offer the lowest and still make reasonable money for themselves. It will be interesting whether Apple can move away from Samsung for all the components they need from them.
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eewiz
8/27/2012 10:38 PM EDT
"if Samsung can maintain its target selling prices" Its a huge if Dylan. Add to that, samsung sold only 200K tabs till now in US.
@joepaiii
Not every rectangular touch screen device violates Apple patents. All most all touch screen phones/tablets from NOKIA/RIM/HTC are rectangular.
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dylan.mcgrath
8/27/2012 11:50 PM EDT
@eewiz- thanks for weighing in. I didn't realize that they had sold so few tablets in the U.S. I think, as IHS iSuppli points out, whether or not Samsung can maintain the selling price is very iffy.
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kinnar
8/28/2012 1:50 AM EDT
The higher margin is straight away can be figured out as Samsung was not to invest much on the OS design and development only driver compatibility with Android was the software part for Samsung where as IOS is totally design developed and maintained by Apple. So Samsung could had thought of entering into market with less profit margin covering high volume.
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SiliconAsia
8/28/2012 3:04 PM EDT
You're making a big deal out of OS design - something that is already amortized over many iPhone/iPad/iMac and etc sold. we should talk about the cost of the phone.
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dylan.mcgrath
8/28/2012 2:06 AM EDT
@kinnar- that is a big part of the attraction of the Android OS, isn't it? The counterargument is that in a sense all Android phones and tablets are largely the same, which is another reason that Samsung may have difficulty maintaining its selling prices.
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daviddever
8/28/2012 9:17 AM EDT
And there you go–once you get past the (potentially-infringing) Apple elements, one is left with a market dynamic for Android tablets analogous to that of Windows desktop/laptop PCs. As an Android (and iOS) developer, one can only focus on limited subsets of hardware for design, testing and evaluation–Samsung remains the best hardware of the lot.
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elctrnx_lyf
8/28/2012 1:16 PM EDT
Does the hybrid touch screen has any special technology inbuilt to work with the passive pen.
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wilber_xbox
8/28/2012 3:19 PM EDT
What a timing for the tear-down analysis.
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