Samsung’s Super Bowl Ad Spend = Profit From 43227 TabletsFebruary 4, 2013 3:37 am
That 15 million plus dollars that Samsung is spending on the Super Bowl ad (Source) sounds ridiculous, until you do some simple numbers. If you assume that the ad is ONLY for the Galaxy Tab 10.1 (It is not, but let us keep it simple) – iSuppli estimates that Samsung makes a profit of 347 USDs per unit sold, even after basic manufacturing costs are counted in.
“A preliminary analysis of the component cost of the Galaxy Note 10.1 reveals the HSPA+ version of the media tablet carries a bill of materials (BOM) of $283. When basic manufacturing costs are added in, the cost to produce the tablet increases to $293. This version sells for approximately $640 in the world market.” (Source)
So for Samsung to recoup the money spent on that Super Bowl commercial, it only needs to sell 43227 tablets – definitely sounds like a rounding error in these days of millions. And if you bring in the Galaxy Note II as well, it would need to sell lesser of both. Now, the 15 million suddenly starts to make sense.