The Samsung Galaxy Z Fold 4 has been out for a while now. The foldable device is incredibly popular and that is really not a bad thing for the Korean manufacturer. That’s how much it earns per device sold.
Smartphone prices have skyrocketed in recent years. Where you used to have to put down a few hundred euros for a flagship, the price now quickly goes over the magic limit of 1,000 euros.
Substantial margin for Samsung on the Z Fold 4
Aside from the iPhone 14 Pro (Max), Samsung’s foldable devices in particular cost well over 1,000 euros. The Z Fold 4 is the frontrunner in this, but how much does Samsung pocket on a device? We tell you.
Japanese medium Nikkei actually had the phone taken apart by Fomalhaut Techno Solution. This allows it to see exactly which parts are in the Samsung Galaxy Z Fold 4 and calculate how expensive they are.
According to Nikkei, the device costs about $670 to make. Given the retail price of $1,799, that means there is thus $1,129 margin on the Samsung Galaxy Z Fold. Of course, that still includes costs for shipping, taxes and retailer’s margin. Also not included in the total are development costs and marketing. In the Netherlands, however, the price is even higher because of taxes.
The Z Fold 4 (Image: Samsung)
More profit than Apple with iPhone 14 Pro Max
Apple is often criticized for the margin it has on the products it makes. Yet Samsung keeps more than Apple with the Galaxy Z Fold 4. For Samsung, hardware costs make up 40 percent of the total price, compared with 46 percent for the iPhone 14 Pro Max.
However, the total price does show why the company can offer hefty discounts on the Samsung Galaxy Z Fold. This made it seem like the company is making a hefty loss per device, but nothing could be further from the truth, that is. Thus, the foldable phones are a hefty cash cow for Samsung, and perhaps this will allow them to become cheaper in the future if there is more competition.