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A teardown of Samsung Galaxy Note 10.1 reveals it carries BOM cost of US$283

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(iTers News)  - The Galaxy Note 10.1, which was recently released across the world, carries bill of material, or BOM cost of US$283, while it sells for approximately US$640  in the global market, U.S. market research firm IHS iSuppli reported.

According to its teardown analysis report of the 10.1 inch Galaxy 10.1 tablet PC, the display and  touch screen make up the largest percentage of the BOM, charging US$100, or almost one third. The memory system represent the second largest portion,  one sixth of the BOM, costing US$45.

The memory system includes NAND flash and DRAM chips. Applications processor cost US$18.8.

In-house components sourcing

The teardown analysis also shows that  Samsung source out  a significant  portion of parts and components internally from its subsidiaries. or its other in-house business units, including  memory system, applications processors, displays, and secondary batteries.

The internal sources of supply gives the company a leverage to control costs, depending on market situation.

“Samsung is a behemoth in the electronic industry and its competitive strength lies in its control, via internal sourcing, of a large percentage of the components that go into its final products,” Rassweiler said. “This allows Samsung to keep costs down, while delivering competitive differentiation. The company’s internal sourcing strategy is certainly in evidence in the Galaxy Note 10.1, where Samsung supplies the memory—both flash and DRAM—as well as the core processor, battery and many other components.”


Component recycling

Furthermore, the report reveals that Samsung still stick by a common cross-platform strategy, which allows the company to use the identical components across a broad line of samrtphones and tablet PCs. By sourcing out identical components internally or from other components makers, which can be found in other product line-ups, Samsung can cut back on costs, because the high volume purchase can give it a buying power to force  components supplies to cut down on prices.

“By using cross-platform components, Samsung can better leverage pricing with outside suppliers, and further reduce the incremental cost of developing other devices,” Rassweiler explained.

The Galaxy Note 10.1 features a quad-core Samsung Exynos processor, the same recently found in the Samsung Galaxy S III handset. The tablet also has the same Intel Corp. wireless chipset found in the Galaxy S III, which includes the PMB9811 and PMB5712 devices.

No technological trailblazer

The IHS iSuppli teardown of the Samsung Galaxy Note 10.1 reveals the tablet isn't breaking new ground in terms of technology. As is usually the case with such hardware releases, each device offers only an incremental set of improvements compared to the previous generation.

However, the new Samsung Galaxy Note 10.1 in some regards does up the ante for media tablet hardware.

The new-generation quad-core processor is sure to make a tangible performance improvement, and will be the main upgrade driver for many consumers.

A feature that make the Galaxy Note 10.1 stick out from Apple iPad is the hybrid touch screen capability, which features not only conventional capacitive touch sensing, but also gives users the option of using a Wacom digitizer pen.

Wacom's pen is passive: it requires no battery or power source, or cords—like a mouse—but works using inductive pen sensing. Essentially one can use the Galaxy note to write on, but still utilize it as a conventional touch tablet.

What's outstanding, too is its high performance secondary battery , which features higher-than-average energy density for a Li-Polymer battery pack at about 520Wh/L energy density, compared to the typical 450Wh/L for Li-Polymer.

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