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(Pocket-lint) - The Samsung Galaxy S8 and S8+ go on sale this Friday 28 April, with the S8 costing £689 SIM-free. While spending nearly £700 on a phone can easily be seen as an expensive purchase, it could be seen as relatively cheap, considering what Samsung is claimed to pay to build each phone.

Analytics company IHS Markit says each Galaxy S8 costs $307.50 (£240) to build. Samsung obviously needs to make a profit on each phone, but considering the specs and features you get, which are the best available on the market right now, £689 starts to look like a good price.

Combine this with some freebies you get thrown in, such as AKG-tuned headphones and gifts such as wireless speakers with select mobile networks and the price you'll pay for a SIM-free Galaxy S8 could even be seen as a bargain.

$307.50 represents the most Samsung has ever spent on building a phone, as it's $43.34 more than the South Korean company spent on making the Galaxy S7, and $36.29 more than it cost to build the Galaxy S7 Edge, which is arguably still a fantastic device.

It's thought the faults with the Galaxy Note 7 could have played a part in deciding the price of the Galaxy S8, as Samsung needed to market the new phone in such a way so as to persuade consumers to stay loyal to the brand.

The exploding batteries of the Note 7 likely caused some customers to stray to other companies, so a low price for a fantastic device should tempt them back.

The price of the Galaxy S8 also seems cheap when you consider the iPhone 8 is expected to cost $1,000 or more, for a phone that will likely be similar in many ways.

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Andrew Rassweller, IHS’s senior director of cost benchmarking services said. “While there are new non-hardware features in the Galaxy S8, such as a virtual assistant called Bixby, from a teardown perspective the hardware in the Galaxy S8 and that of the forthcoming new iPhone is expected to be very similar.”

Writing by Max Langridge.