236$ BOM and the phone is sold for ~600$. Theres a lot of room for other Asian vendors, to simply compete on price. I feel in another 3-5 years ASP of a top smartphone like this will drop to 300$. Already Nexus 4 and Xiaomi(top brand in china) are being sold for ~300$
There is also the dealer / major distributor margin that must be factored in to the $600 list price tag. My guess is that Samsung will probably see a healthy margin over the scrubbed BOM/COGS but it won't be 150%.
236$ BOM and the phone is sold for ~600$. Who will account for all the R&D, marketing, distribution costs?? Surely, after all the court battles Sammy is no longer going to rely on just mimicking features. I agree that 600 is a tad too much but people are happy to pay then why not? Do Appl have exclusive rights to be the only rip-off allowed in this world?
As we unveil EE Times’ 2015 Silicon 60 list, journalist & Silicon 60 researcher Peter Clarke hosts a conversation on startups in the electronics industry. Panelists Dan Armbrust (investment firm Silicon Catalyst), Andrew Kau (venture capital firm Walden International), and Stan Boland (successful serial entrepreneur, former CEO of Neul, Icera) join in the live debate.