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 Posted by Roy L. Fuchs on 06/24/06 20:53 
On 24 Jun 2006 07:11:23 -0700, "Larry Qualig" <lqualig@uku.co.uk> Gave 
us: 
 
> 
>Pixel Dent wrote: 
>> In article <t69glhivtgga.62ut28yz5jrc.dlg@40tude.net>, 
>>  "Jay G." <Jay@tmbg.org> wrote: 
>> 
>> > On 23 Jun 2006 08:22:30 -0700, asj wrote: 
>> > > 
>> > >    http://www.digitalhomecanada.com/content/view/1342/51/ 
>> > > 
>> > > 
>> > >    According to the company's teardown analysis, the Bill-of-Materials 
>> > > (BOM)  costs alone for the HD-A1 exceeds its $499 U.S. retail price. 
>> > > The HD-A1's estimated U.S. $674 cost... 
>> > 
>> > I'd be interesting to see the actual breakdown of components and prices, 
>> > especialy since Toshiba may be privy to special discounts on specific 
>> > components that could beat even wholesale prices. 
>> 
>> Good point, especially with the way Japanese companies are organized. 
>> Even if they're buying parts from another company, if that company is 
>> part of their syndicate they are essentially buying from themselves. 
> 
>Several years ago I read an article where a "Chevy Chevette" would cost 
>$80,000 if you calculated the cost of the car based on the individual 
>components that were purchased seperately. 
 
  A $150 motherboard would cost you over $3000 if you bought each 
part, and the bare mobo itself would likely be $50. 
 
  That differential is far more than that of a car. 
 
  When one buys an electrical component, one pays a retail price that 
includes a few middle men, and lots of handling. 
 
  When a product maker buys parts, they buy millions of pieces. 
 
  A 4 cent ceramic SMD capacitor becomes a 0.04 cents each.  That is 
$0.0004! 
 
  BIG DIFFERENCE!  And NO, one does NOT have to be in some "syndicate" 
to do it.  You just have to be able to buy a million or more of EACH 
part that you incorporate into a given design. 
 
  IIRC, Toshiba actually makes discreet components as well as chips 
designs and even has chip fab houses.
 
  
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