Although Samsung Galaxy S4 it is made of plastic and for many it seems cheap to the touch, the device still has a higher production cost than the terminal iPhone 5, and this is perfectly normal, considering its size and the included hardware. Those from IHS did an analysis of the components of the new terminal and came to the conclusion that Samsung pays $236 for its components, $244 being the final price that includes assembly, the production cost of iPhone 5 being only $207.
Although its hardware is not radically different from the Galaxy S III introduced in April of 2012, the Samsung Galaxy S4 includes some critical component updates that enhance its functionality as well as its BOM cost. Among the upgrades are a larger, full high-definition (HD) display; a beefed-up Samsung processor; and a wealth of new sensors that set a record high for the number of such devices in a smartphone design. And despite the larger display and other changes, the Galaxy S4 has roughly the same width and the same ease of handling as the Galaxy S III.
Among the components that generated an increase in the production price, compared to Samsung Galaxy S III, the full HD screen, the new processors, the sensors for the S Health system and that's about it. It was expected that the new terminal would have a higher production price than the old one, it was normal for it to be higher than that of the iPhone 5, and this explains the higher selling price than the old flagship. Practically in some countries Samsung Galaxy S 4 it's as expensive as the iPhone 5, but I don't think that will scare anyone away.
