Galaxy S4's souped up specs land Samsung with hefty bill

The Samsung Galaxy S4's bill of materials (BOM) costs the firm about $236 per unit, according to a recent teardown report from research firm IHS - about 15 percent more than its predecessor, the S3.

Analyst firm IHS reported the larger display and eight-core processor were the chief reasons for the price rise.

"Although its hardware is not radically different from the Galaxy S3 introduced in April of 2012, the Samsung Galaxy S4 includes some critical component updates that enhance its functionality as well as its BOM cost," said Vincent Leung, senior analyst for cost benchmarking at IHS.

"Among the upgrades are a larger, full HD display; a beefed-up Samsung processor; and a wealth of new sensors that set a record high for the number of such devices in a smartphone design."

The Galaxy S4 was unveiled earlier this month. Samsung's device has been noted for its larger display, faster processor, and the addition of a variety of lifestyle sensors.

According to IHS, the latest Galaxy smartphone has a display that costs about $10 more than the one found on its predecessor. The Galaxy S3's display cost Samsung about $65 dollars for each unit.

The S4's processor was also a bit more costly than the past iterations. IHS says the ARM eight-core Exynos processor found in the S4 cost Samsung about $30. That is in comparison to the $17.50 price tag of the chip found in the S3.

Samsung added a slew of unique sensors to its latest offering. The S4 offers sensors such as an accelerometer, RGB light, barometer, and gyroscope. According to IHS, the added sensors cost Samsung about $16 per device.

IHS says that Samsung is able to keep the prices on its handset down by internally manufacturing the parts for its phones. Samsung reportedly makes its own displays and processors.

In total, IHS reports that Samsung builds about 63 percent of the total components found in the S4.