Samsung Galaxy Tab: Real Price is $200 – Consumer Outrage?

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We have some important news to bring to those who are planning to buy a Samsung Galaxy Tab this month, as it has been reported that the actual cost in materials to make the device is around $200.

As most of you will be aware, much of the Galaxy Tab focus has been about it’s premium price point and at $500+ plus, it doesn’t actually come very cheap. If the total materials cost is $200, what happens to the other $300+?

As Phandroid reports, the extra costs goes into labour, R&D costs, marketing distribution and software development, all of which you could argue that you shouldn’t have to pay for. Then again, we are in 2010 of course and this is a natural practise on almost all electronic products you see in stores.

Just knowing that the device costs $200 to make though certainly isn’t pleasing, but there isn’t a great deal which could be done about it. What are your thoughts on this revelation? Are you angry about it, or were you already aware that material costs are cheap compared to the final retail price?

Check out a review of the Samsung Galaxy Tab here.

Also See: Samsung Galaxy Tab 4 NOOK 2-way case and Kimono Sleeve

  • Jason

    Quote….As Phandroid reports, the extra costs goes into labour, R&D costs, marketing distribution and software development, all of which you could argue that you shouldn’t have to pay for.

    ummm?? Argue about what? not getting something for nothing

    So Samung should spend millions and millions of dollars of their own money to put together this awesome product that many People will want and love… And you don't think they should push the cost to the customers? Why shouldn't they? They are a business and in business for profit? last I knew they were…. Look at the iPhone. Cost Apple what? $180 to make the phone and they sale it at AT&T with a 2 year contract for as low as $99. Good deal right? AT&T also charge like $30 more a month for the same services Verizon or T-mobile will give you, that extra $30 goes to Apple that you pay. And Samsung give you freedom with it's devices, Apple try to get everybody locked into the APP Store.. When AT&T and Apple are done with you 24 months later in that contract the 3GS cost you $820 and iPhone 4 $920 for 16gig model and $1020 for the 32Gig model.

    Samsung is a very good company.. They make quality products. I have a Fascinate Smartphone and a company putting together products that are superior to everyone else (Galaxy S Smartphones) I don't mind if I actually have to pay for something that is worth every penny and not overpriced… Good value.

  • David

    Why does any company make a product? To make money of course! If they only sold it at the cost price of their raw materials, there would be no point in producing it.

    Labour and intellectual property are the expensive components of most businesses, so of course they have to be built into the product’s price.

    And even forgetting the above points, it comes down to the laws of supply and demand. If you are prepared to pay the >$500 price to own it, then you’ve already agreed that it is worth the price, and what it actually costs to make is irrelevant. If not enough people agree that the product is worth its sell price, then they won’t buy it and the price will drop or the product will no longer be produced.

  • shaffti

    That’s the way all mobile devices and computers are.

  • rakesh sharma

    this i s aosome

  • Fabian

    I wanna know how much it cost to McDonalls to make a Big Mac and then, then ama go over there and tell them to stop ripping me off!! lol!
    Well i guess they got to pay the cooks and all the employees that serve it to me, and rent and etc..lol
    who ever started this forum is pretty ignorant…

  • http://E.com E

    It’s Christmas and the stores are full of them. Within 6 months these will be the correct price I think. $449.

  • akber

    sab say ganda mobile samsung galaxy

  • akber

    tumhari maka