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Thread: What your Gadget really costs

  1. #1
    The Voice of Reason Soulburner's Avatar
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    What your Gadget really costs

    http://images.businessweek.com/ss/07...n_id=msn_intel

    Summary:
    Apple
    iPhone

    Date: June 2007
    Retail price: $499 (4GB) $599 (8GB)
    Cost of components: $230 (4GB) $265 (8GB)

    Apple
    First-Generation 2GB iPod nano

    Date: Sept. 7, 2005
    Retail price: $199
    Cost of components: $98.18

    Apple
    Video iPod, 30GB

    Date: Oct. 12, 2005
    Retail price: $299
    Cost of components: $151

    Microsoft
    Xbox 360

    Date: Nov. 22, 2005
    Retail price: $399
    Cost of components: $470

    Toshiba
    HD-A1 HD-DVD Player

    Date: March, 2006
    Retail price: $499
    Cost of components: $700

    Motorola
    Q

    Date: Early 2006
    Retail price: $349 (one-year contract); $199 (two-year contract)
    Cost of components: $158

    Apple
    iMac, 17 in.

    Date: Jan. 10, 2006
    Retail price: $1,299
    Cost of components: $898

    Apple
    Second-Generation 4GB iPod Nano

    Date: Sept. 12, 2006
    Retail price: $199
    Cost of components: $72.24

    Sony
    PlayStation 3

    Date: Nov. 17, 2006
    Retail price: $599 (60GB) $499 (20GB)
    Cost of components: $840 (60GB) $805 (20GB)
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  2. #2
    XS_THE_MACHINE hawkeyefan's Avatar
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    wow MS and Sony are both eating it
    Last edited by hawkeyefan; 02-22-2007 at 05:49 PM.

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  3. #3
    I am Xtreme safan80's Avatar
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    more money microsoft loses the better.


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    Xtreme Mentor xlink's Avatar
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    who wants to buy an xbox 360, dissect it for parts and sell the parts?

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    Xtreme Addict eddieate's Avatar
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    Haha, If only the PS3 was modular, I could make a fortune buying them retail, taking them apart and selling the components back to sony
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    Xtreme Addict eBoy0's Avatar
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    Sony
    PlayStation 3

    Date: Nov. 17, 2006
    Retail price: $599 (60GB) $499 (20GB)
    Cost of components: $840 (60GB) $805 (20GB)

    OUCH!!
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    He should have given up his nuts too. Since clearly anyone that wants any Apple product that bad, Should NOT ever breed.
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    Admin Vapor's Avatar
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    Moral of the story....invest in Apple?

  8. #8
    I am Xtreme safan80's Avatar
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    Quote Originally Posted by Vapor
    Moral of the story....invest in Apple?
    and Nintendo.


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  9. #9
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    Quote Originally Posted by safan80
    more money microsoft loses the better.
    MS is making money on 360 now.

  10. #10
    Xtreme Addict thunderstruck!'s Avatar
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    Quote Originally Posted by safan80
    more money microsoft loses the better.
    why?
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  11. #11
    XS News OmegaMerc's Avatar
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    Toshiba
    HD-A1 HD-DVD Player

    Date: March, 2006
    Retail price: $499
    Cost of components: $700

    If this is true how can they sell the xbox 360 HD DVD player for so cheap? I got mines off a sale from bestbuy (I think) for a buck fifty as soon as it was released.

    Sony PSP should be added in there for some extra bashing
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    Quote Originally Posted by OmegaMerc
    Toshiba
    HD-A1 HD-DVD Player

    Date: March, 2006
    Retail price: $499
    Cost of components: $700

    If this is true how can they sell the xbox 360 HD DVD player for so cheap? I got mines off a sale from bestbuy (I think) for a buck fifty as soon as it was released.

    Sony PSP should be added in there for some extra bashing
    I have a feeling that many of these figures have been pulled out of someone's ass...

  13. #13
    Registered User Sy[N]tH's Avatar
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    Consoles...

    It's not secret that companies lose money on console sales, but make up for it with the games...

    On the other hand though, I can't see why the DVD player sells for less than the cost of building it; I mean, do these guys make royalties off the movies that are sold in that format?

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    Xtreme Addict m0da's Avatar
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    Quote Originally Posted by couppi
    I have a feeling that many of these figures have been pulled out of someone's ass...
    no, I'm sure this is true. the consoles losses, like synth said are patched up by the sales in games. and yes, almost all (wii is such an oddball) consoles are sold at a loss.

  15. #15
    Xtreme Enthusiast Vice's Avatar
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    While this is interesting and all, it is common knowledge that most companies, excluding sony , sell their products for more than it cost to make them.

    I mean, Nintendo makes what, $50-$100 profit per console sold?

    And thats not even including software profit...
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  16. #16
    Xtreme Gamer yaddam205's Avatar
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    I'd be more interested in the cost of computer hardware. Like a 680i or an 8800GTX.

  17. #17
    YouTube Addict nn_step's Avatar
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    damn iPhone is a massive rip
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  18. #18
    Xtreme Enthusiast squilliam's Avatar
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    Quote Originally Posted by safan80
    more money microsoft loses the better.
    Gah... Microsoft isn't all that evil. Damn fanboys.
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  19. #19
    Xtreme Enthusiast turbox997's Avatar
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    Now...I'll refrain from bashing apple... but i can't stand it when i see anti corporate mac users lash out on MS users and such for being corporate fuelers... but Apple and Steve Jobs are amoung one of the most capitalistic duos out there.

    ...sheesh..talk to me about evil corporations....
    Nothing wrong with making a buck, but too many pple who claim to be "hippies" not realizing what and where they are buying from.
    Last edited by turbox997; 02-22-2007 at 09:28 PM.
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  20. #20
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    Quote Originally Posted by eddieate
    Haha, If only the PS3 was modular, I could make a fortune buying them retail, taking them apart and selling the components back to sony
    Ed.

  21. #21
    Registered User Hooker's Avatar
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    I wonder what impact R&D has on these prices. I'd imagine some of those machines costing a lot more when manufactured in those costs

  22. #22
    Xtreme Addict BlackX's Avatar
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    Apple
    Second-Generation 4GB iPod Nano

    Date: Sept. 12, 2006
    Retail price: $199
    Cost of components: $72.24
    This price is only correct if you buy seperate parts in some electronics market. Apple is buying parts in 100,000 pcs. Components of 4GB nano II costs only 30-35$ to Apple. Memory is the most expensive component.

  23. #23
    Xtreme PSU Tester jonnyGURU's Avatar
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    Quote Originally Posted by BlackX
    This price is only correct if you buy seperate parts in some electronics market. Apple is buying parts in 100,000 pcs. Components of 4GB nano II costs only 30-35$ to Apple. Memory is the most expensive component.
    Exactly.

    The prices are finished product retail vs. individual components retail. It's like they say with cars: If you bought a $20000 car part for part, it would cost you $50000.

  24. #24
    I am Xtreme Revv23's Avatar
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    Quote Originally Posted by Hooker
    I wonder what impact R&D has on these prices. I'd imagine some of those machines costing a lot more when manufactured in those costs
    For accounting reasons i bet they factor R&D into the total cost.

    Thats why several people look at PS3 and say sony is losing thier ass. but the money has already been lost, so even making some of the money back is better then nothing for them.

    One that surprised me was the motorola Q. CAn't believe the markup on it. But them again most companies offer it for way less if you get it with a plan.

    Personally i think nintendo has the right idea, make a realistic product with goal on profit AND marketshare. Rather then just going for marketshare and hoping to make it up a few years down the road.

    THe inq has a good article on this, but with the $200 tacked onto sony, with royalty payments ($10-$15) best case they need to sell 10-20 games to each person that buys a console just to break even. thats $1000 worth of games.

    MS on the other hand needs to make up $70 so they need to sell 3-5 games to break even, something that many will do the month they buy the console.

  25. #25
    Muslim Overclocker ahmad's Avatar
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    Yeah its obvious Apple is making a boatload on Ipod nano sales.

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