Samsung's Galaxy S8 with the same 64GB of NAND memory carries a BOM of $302 and full retail price is $720. At $720, the $302 BOM is 42% of the phone's cost. I bought my S8 a few months ago at Costco (COST) for $600 and got a $50 gift card this month which lowered the final cost to $550.
Click images to see full size
|Apple price graph showing open gaps|
With a 5% to 18% higher profit margin due to its lower BOM as a percentage of retail price, Apple is clearly positioning its phone as a "status symbol" to take advantage of its popularity while it can.
Kirk Lindstrom's Investment Letter
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