Galaxy Tablets costs less to make than iPad

By siliconindia   |   Tuesday, 02 November 2010, 16:11 IST
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Bangalore: A survey conducted by iSuppli reveals that the making of the Samsung tablet is much cheaper than the making of the Apple ipad. Although the Galaxy Tab is within $30 of a 3G iPad in stores, it only costs about $205.22 in raw parts whereas Apple’s larger 16GB tablet costs $264.27 more to produce, reports Electronista. The key differentiating factor between the two is the display screen. Galaxy tab's is a seven inch screen which is low on color accuracy, resolution and size. Hence brings the cost down to about $57, whereas Apple has billed the screen as the most expensive part of the gadget as it helps in photo display, videos and the screen renders wider viewing angles. Hence ensuring the quality of the screen is very essential for Apple and costs about $98. The device also does not have some of the features of the iPad like gyroscopic Microelectromechanical Systems sensor which is used for gaming. Principle analyst Andrew Rassweiler said that "Instead of matching up with the iPad on a feature-by-feature basis, the Galaxy Tab really is larger version of Samsung's Galaxy 5 smart phone. While the design approach makes the Galaxy less expensive to produce than the iPad 3G, it also makes for a product that lacks the same usability." Flash memory is the next most expensive component. iSuppli estimates that it costs $51 for the combination of 16GB of main flash memory, unusually from SanDisk and not Samsung, with the 1.75GB of separate memory to hold the firmware and other core content. Samsung's 1GHz Hummingbird processor is actually one of the less expensive parts at $8.84, while the cameras, often used to justify the relatively close pricing with the iPad, cost just $7.95 combined. Other notable parts include the raw shell and connectors ($15.22), touchscreen and gyroscope controllers ($13.87), Samsung battery ($10.60) and Infineon 3G chipset ($10.07). iSuppli also factors in short range wireless from Broadcom ($8.96) as well as the necessary power and in the box materials. Last week, Sprint Nextel announced that it planned to sell the Galaxy for a third less than rival Verizon Wireless, saying it would sell the device for $399.99 in exchange for a two-year commitment to a data service plan. Verizon Wireless,a joint venture between Verizon Communications(VZ) and Vodafone Group had said it would sell the device for $599.99, but offered a prepaid data plan without the requirement of a contract. Both will begin selling the device later this month.