Yes, this is how businesses work! They manufacture something at a cost, add their profits to it and sell it to the customer at a higher price. But how much higher? Well, it depends on the brand you are buying.

In this so-called well-connected world, where mobile phones have become synonymous with one’s social status, do you ever stop and realise how much profit these high-end flagship companies are making? We will give you an idea about the world’s favourite Samsung Galaxy S8 phone recently launched in India. The phone has been priced at Rs 57,900. But if you delve deeper then you will find that the actual price of the phone is far less than this.

This is well-known that smartphone manufacturers, in order to generate maximum profits, sell their products at higher than actual prices. So, when we started with Samsung, the facts that came out in the open regarding the pricing were quite interesting. The total bill of materials for the 64 GB storage variant is approximately Rs 19,500. Add to this the manufacturing cost of Rs 381.

The amount sums up to Rs 19,900. Just imagine, how much profit the company is making on a single piece of Samsung Galaxy S8!! Add to this the fact that as per reports, all the 1,50,000 Samsung Galaxy S8+128 GB models have been sold out and there is none available for pre-order now. Imagine the sale of profits the company would be making on these phones.

Though the Note 7 was a big let-down, people have chosen to ignore that and embrace the new flagship with full enthusiasm. As per reports, Samsung has already sold 620,000 units of the S8 and S 8+ in South Korea so far. Someone is making humongous amounts of money out of our pockets!

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Author: Technology Vista