Manufactured by Samsung Galaxy S6 and S6 Edge is the most expensive in the brand's history so far. In cooperation with Verizon, the cost of producing one mobile reached a whopping $290. IN Galaxy The S6 uses approximately 110 components, compared to its predecessor Galaxy The S5 was only about 80 different parts, not to mention that the Gorilla Glass 4 is much more expensive and the back of the cover, which is glass, also costs more than a plastic cover and such.
Fortunately, Samsung is able to manufacture most of the components itself, and one way it can reduce the overall cost of producing the S6 and S6 Edge is to use its own Exynos processor, which saves on the final price of silicon but also on the fees that Qualcomm profited from. Do you think it can't be much? Well, you will be surprised but it makes about 2,5 - 5% of the final price of every phone with Snapdragon processor from Qualcomm. These fees actually make a bigger margin than the actual sale of their processors. Samsung has already paid more than $9 billion in these fees to Qualcomm since the series' inception Galaxy S.
As Samsung started to use its own processors in mobile phones, it is said that the Qualcomm company began to think and seriously deal with the question of whether it is necessary to ask for such high fees and whether they should not be reduced. Qualcomm earns the most from these fees and has profited mainly from Samsung, as it has been the biggest customer so far.
In addition, industry insiders estimate that Qualcomm could try to combine the production of chipsets together with Samsung, because it really does not make sense to fight in the market with such a good manufacturer and its excellent production process, as Samsung has or even another upcoming company that is becoming MediaTek. We will see what will happen with Snapdragon processors in the near future, whether Qualcomm will stay with its rather high license fees or combine its production with another company. After all, Qualcomm is one of the biggest companies, earning nearly $30 billion, and most of that profit comes from royalties.
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*Source: PhoneArena
