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Re: Game over - Toshiba losing money on each HDDVD sold!

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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