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Teardown: Samsung Galaxy Note 10.1

Posted: 29 Aug 2012     Print Version  Bookmark and Share

Keywords:teardown  Galaxy Note 10.1  iPad  bill of materials  Wi-Fi 

Following a teardown of Samsung's latest tablet, market research firm IHS found that Samsung can earn a better profit margin on the Galaxy Note 10.1 than Apple could on the market-leading iPad. However, IHS added that it could be only possible "if Samsung maintains its target selling prices."

A preliminary analysis of the component cost of the Galaxy Note 10.1 reveals the HSPA+ version of the media tablet carries a bill of materials (BOM) of Rs.15,464.48 ($283). When basic manufacturing costs are added in, the cost to produce the tablet increases to Rs.16,010.93 ($293). This version sells for approximately Rs.34,972.68 ($640) in the world market.

Table 1 below presents the preliminary results of the IHS iSuppli teardown analysis of the Samsung Galaxy Note 10.1 media tablet. Please note that this teardown assessment is preliminary in nature, accounts only for hardware and manufacturing costs and does not include additional expenses such as software, licensing, royalties or other expenditures.

For the Wi-Fi-only version of the Galaxy Note 10.1, the BOM is estimated to decline to about Rs.14,207.65 ($260). U.S. retail pricing for this version has been announced at Rs.27,267.76 ($499).

In comparison, a similarly equipped third generation new iPad with Wi-Fi and 16GB of NAND flash memory carried a Rs.17,267.76 ($316) at the time of release and a retail price of Rs.27,267.76 ($499).


"With the Galaxy Note 10.1, Samsung continues to seek the magic formula for a media tablet that can rival the iPad's market penetration," said Andrew Rassweiler, senior director, teardown services, IHS. "And where some other tablets introduced in recent times generated small or no hardware profit, the Galaxy Note 10.1 could turn a decent per unit margin for Samsung, and stands to be a money maker—if the company can extend the recent success of the Samsung Galaxy Note smartphone to its tablet line."

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