There’s a three letter acronym that’s sacred in the mobile phone industry, and it’s BOM. It stands for bill of materials, and any economist will be able to tell you that a company’s goal is to sell the cheapest thing to make for the most amount of money. If it costs you $400 to make a phone and you’re selling it for $425, you’re doing it wrong.

Which brings me to Samsung’s most expensive phone to date, the Galaxy Note 3. Not only is it the first Samsung phone to start at 32 GB of internal storage, it’s also the first Samsung phone with a brand spanking new 5.7 inch AMOLED panel. That panel isn’t cheap, and neither is that RAM. According to TechInsights, there’s about $240 worth of components inside the Note 3, with the most expensive obviously being the $61 display.

Why does Samsung sell a $240 for roughly $1,000 in some parts of Europe? Think about all the mouths they need to feed. There’s the taxes, the company that ships the retail boxes, the company that sells the phones to consumers, the people who put the phone together, the patents, and let’s not forget the team who made the television ad, the magazine ad, and the billboards.

All that adds up.

How does $240 compare to an iPhone 5s? According to iSuppli, the 5s has $199 worth of parts inside, but that’s the number for the 16 GB model. Assuming an extra $10 for 32 GB of storage, you’re still looking at an increase in $30 on the Samsung. That’s simply due to the panel.

Mo’ glass, mo’ money, mo’ problems.