Samsung foldable smartphone teardown reveals 50% local parts

Lower component costs bring higher profit margin than newest iPhone

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The estimated cost of components for Samsung's latest model, the Galaxy Z Fold 4, is about $670, or less than 40% of its sales price. (Photo courtesy of the company)

NORIO MATSUMOTO, Nikkei staff writer

TOKYO -- A teardown of Samsung Electronics' newest smartphone shows that its estimated cost of components is about 40% of the device's sale price, beating Apple's latest iPhone in this key profitability metric. This suggests that profitability has spurred manufacturers to make foldable smartphones of their own. Samsung is taking advantage of parts made in South Korea for the model, as seen in its local content ratio of about 50%.

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