What your Gadget really costs

[Soulburner]

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)

[hawkeyefan]

wow MS and Sony are both eating it

[safan80]

more money microsoft loses the better.

[xlink]

who wants to buy an xbox 360, dissect it for parts and sell the parts?

[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.

[eBoy0]

Sony
PlayStation 3

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

OUCH!!

[Vapor]

Moral of the story....invest in Apple?

[safan80]

Moral of the story....invest in Apple?

and Nintendo.

[kemist]

more money microsoft loses the better.

MS is making money on 360 now.

[thunderstruck!]

more money microsoft loses the better.

why?

[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

[couppi]

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...

[Sy[N]tH]

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?

[m0da]

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.

[Vice]

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...

[yaddam205]

I'd be more interested in the cost of computer hardware. Like a 680i or an 8800GTX.

[nn_step]

damn iPhone is a massive rip

[squilliam]

more money microsoft loses the better.

Gah... Microsoft isn't all that evil. Damn fanboys.

[turbox997]

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.

[DesertShooter]

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.

[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

[BlackX]

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.

[jonnyGURU]

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.

[Revv23]

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.

[ahmad]

Yeah its obvious Apple is making a boatload on Ipod nano sales.