A recent report from TechInsights states that the component costs for manufacturing the Galaxy S6 is estimated at $281, which represents an increase of 12% compared to the Galaxy S5.
Even so, the release price of the Galaxy S6 was lower than the original retail price of the Galaxy S5. It also says thats Samsung has paid around $9.2 billion in patent royalties to Qualcomm during the four years since the release of the Galaxy S.
According to another report, from Business Korea, Samsung is trying to reduce patent royalties required to manufacture their smartphones, which already represent a production cost reduction from 2.5% to 5%, by using its in-house Exynos chipset in the Galaxy S6.
Samsung have, until last year, been testing their Exynos chipsets, by making variants of their smartphones with them, instead of the usual Qualcomm’s Snapdragon chipsets.
The Galaxy S6 and the S6 edge, where the first equipped exclusively with Exynos 7420, which is staring to hurt Qualcomm.
Because of this, Qualcomm is considering cutting its patent royalty fees, in order to keep their biggest mobile application processor customer in the world, aggravated by their Snapdragon 810 chipset being riddled with overheating issues.
Besides Exynos, Samsung is also developing its own CPU cores codenamed ‘Mongoose‘ and mobile GPUs, which they plan to use with the next-generation Exynos chipset. This investment will allow Samsung to be less dependent from other brands and developers, therefore decreasing production costs. Lets just hope that, besides profit increase, it will also represent lower prices.