Most expensive part of the phablet is the touchscreen, which costs $2 more than the one in its predecessor.
A teardown of Samsung’s new phablet by TechInsights reveals that the device costs $232.50 to build, which is $14 more than the Galaxy Note 2 and $18 more than the Galaxy S4.
The Note 3 has a slightly bigger screen than the Note 2 (5.7 1080×1920 vs. 5.5 inches 720×1280), a faster SoC (2.3 GHz Snapdragon 800 vs. 1.4GHz Exynos 4) and an extra gigabyte of RAM.
The most expensive part of the phablet is the display, which comes in at $61. Next comes the SoC and BB+XCR at $49.50 which is cheaper than the S4’s at $59. This is because of the integrated baseband in the SoC, which the Galaxy S4 did not have.
TechInsights notes that the Note 3 uses Qualcomm’s MSM8974AB Snapdragon 800 chip. However, sources that have spoken to VR-Zone Chinese from the upstream supply chain say this chip has not yet shipped so the likely model the phone is using is the MSM8974.
The Note 3 is listed at $699 on many U.S retailers, which means Samsung is making a healthy margin on the phone.