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Samsung Galaxy S4 shipments topping early estimates, says analyst

According to analyst Mark Newman of Bernstein Research, Samsung is shipping 10 million Galaxy S4 units per month, higher than previously expected.
April 5, 2013
Galaxy S4

The Galaxy S4 is just weeks away from launching and, according to analyst Mark Newman, has surpassed early shipment estimates. Samsung is shipping an estimated 10 million units per month in order to meet the massive demand. Potential supply issues in March had Newman originally project a smaller estimate, but that has since leveled off.

Previously, iSuppli estimated the Galaxy S4 will cost $236 to manufacture which is slightly cheaper than the Galaxy S3 at $243. Newman estimates it will actually cost $257, (16GB version featuring HSPA). However, since Samsung is obtaining more components internally, the company should save money. From Newman’s report:

We estimate that, while 53% of Galaxy S3 BOM [Bill of Materials] cost was internal, 58% of Galaxy S4 BOM costs should now flow through Display/Semis (Memory & S.LSI). We estimate that, while 64% of Galaxy S3 BOM cost was within the Samsung Group (i.e. SEMCO, Samsung SDI, etc.), 68% of Galaxy S4 BOM costs should now flow through the Samsung Group. Additional profits to Samsung group entities should benefit Samsung Electronics in the form of increased equity income.

Although Newman estimates a 46 percent profit margin on the Galaxy S4 compared to a 48 percent profit margin on the Galaxy S3, strong sales should help Samsung continue to grow in 2013.