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144 Comments
- FetalSage, on 07/05/2009, -12/+162What some people do not understand, is the cost of R&D that goes into the products in that article. Even if the iPhone's components cost under $100, that doesn't mean the phone itself should be cheaper. There are developers, designers, engineers and many other individuals involved that's worked hard.
- amauldin71, on 07/05/2009, -0/+62What about a Fleshlight?
- linagee, on 07/05/2009, -12/+66What the PARTS to your gadget really costs
(Did they forget advertising, engineering, management, etc.?) - sirjohnmichalot, on 07/05/2009, -0/+42A business has more expenses than just the cost of the raw materials. I was actually surprised at how small the markup was on most of those gadgets. They can't be making much money per item after adding in other expenses.
- popstation, on 07/05/2009, -0/+37These comments make my eyes bleed
- jman583, on 07/05/2009, -3/+32But most of the cost for R&D was payed off back when the iPhone was 600 bucks (And was only 245.83 to make).
http://digg.com/tech_news/iPhone_Costs_Only_245_83 ... - ziggotron, on 07/05/2009, -1/+27The $199 is no where near the retail price of the iPhone, that's only the subsidised cost; unsubsidised you're looking at almost $800 USD.
- corripio, on 07/05/2009, -0/+23I bought all the components from tiger direct and built myself a sweet iphone out of an old toaster. Only sheep would pay for all that corporate ***** like research, development, engineering, manufacturing, etc.
- iansh, on 07/05/2009, -0/+22He would be mocking Asians if he put ID
- dondochaka, on 07/05/2009, -2/+21Not to mention the overhead in manufacturing, advertising, packing/shipping, the list goes on. A lot of money is eaten up behind the scenes just to make the wheels turn.
- PCloadLetterWTF, on 07/05/2009, -0/+19Can you put a price love?
- AndrewDB, on 07/05/2009, -1/+19It's common business practice.
Take any business classes in college and they'll tell you that. - pradaaddict, on 07/05/2009, -4/+19The only one that surprised me was the iPod touch. Everything else seems very reasonable once you factor in the other costs associated with getting the product into homes.
- coolguyslim, on 07/05/2009, -0/+14This article lied to me, it didn't tell me how much MY gadgets cost. I have none of those gadgets.
- kanojo1969, on 07/05/2009, -5/+19Nice one, not a shred of evidence to back up your claim, you may as well have typed 'dasfkjhasdkfjh' for all the ***** use you are.
- Countess666, on 07/05/2009, -0/+14the iphone cost printed here is highly deceptive. you pay a lot more for it through the mandatory 2 year phone contract.
in countries where its illegal to sell phones and contracts in this way a iphone costs closer to $500.
the palm pre's real cost are probably a lot higher as well. - ChunC, on 07/05/2009, -3/+16I find it a bit perplexing that people find PS3 totally over priced when they are more than willing fork over $2000 for an iPhone with 2 year contract which is about equivalent to A PS3 with 26 full priced games. I guess its all relative to your nearest competitor and the comparing game console with phone is like comparing apples and oranges. One cannot deny the value of buying a PS3...
...sigh...
Yes I am a Sony fanboy and Im still trying to justify my own (perhaps soon to be dead or out of style) purchase...Must bust out the flame shield... - SEN5241, on 07/05/2009, -0/+12Yahoo server down? I gues somebody turned off Niagara Falls.
- Fixhotep, on 07/05/2009, -2/+14Let me rephrase, they didn't specify if those prices are for if you buy 1 part or 100,000 of them. I'm sure they get a quantity discount. It's easy to say that the screen costs $85, but by buying 2 million of them they only had to pay $79 each.
Also, some of those parts are not custom made. They bought them from a manufacturer just like anyone else.
It's ok to take a moment and think. - courtjester555, on 07/05/2009, -2/+14Yes. Yes I can.
- vondrak, on 07/05/2009, -0/+11Do people have to comment on a story in order to digg it? Why can't a story be popular due to its content and not the comments?
- absofveal, on 07/05/2009, -2/+13"No third party has made a profit on PS3 exclusives"
Thats ridicuous, Konami has sold close to 4.5 million copies of MGS4 on ps3, pretty sure they turned a profit on that one.
And how is it dead when its sold more than the 360 at the same point in its life cycle? Was the 360 dead one year ago? - garvin122, on 07/05/2009, -3/+12This article isactually really interesting. Can you believe Microsoft and Sony are selling products below the cost of their components just to take in long term profits as a strategy!
- sexybobo, on 07/05/2009, -1/+10They make at least $10 off every game sold and $2-3 off all dlc.that adds up quickly
- felman87, on 07/05/2009, -0/+8Actually, it's the wii that has turned a profit from day one. PS360 were sold at a lost when they first came out.
- jman583, on 07/05/2009, -0/+8Don't forget the subsidies from the cell phone plans.
- mikedubbs, on 07/05/2009, -2/+9True cost of the goods:
Direct Material
Direct Labor
Overhead
COGS (DM+DL+Overhead)
SG&A
Profit
Total Cost of product (COGS+SGA+Profit) - Fixhotep, on 07/05/2009, -3/+10They also didnt factor in the fact that those companies arent paying list price on those parts.
- RoloTomasie, on 07/05/2009, -2/+8You're right, but Apple's pricing is still WAAAAY inflated.
- jodhas, on 07/05/2009, -1/+7Not an accurate estimate.
- squirrelninja, on 07/05/2009, -0/+6Stradf's just a little butt hurt, don't mind him.
- S1ngular1ty1, on 07/05/2009, -0/+6Games are always way more profitable than the actual hardware. I mean in general, not specific games.
- rockon4life45, on 07/05/2009, -4/+10It's interesting how both Microsoft and Sony are doing the same thing but to my knowledge Microsoft is the only one turning a profit. (Even with the year head, I don't think Sony is projected to make a profit for several years)
- Lorddias, on 07/05/2009, -0/+6Wish they shown the PS2. Sony probably doesn't give a ***** about the PS3 because the PS2 costs like $10 to make and they are what, $100? And people still buy the damned things..
- LoudMusic, on 07/05/2009, -3/+9Like the cute Chinese girls that put them together.
http://slsecrets.info/wp-content/uploads/2008/08/m ...
:D - KevenM, on 07/05/2009, -1/+6Can you believe I ended this question with an exclamation mark!
- GoatMonkey2112, on 07/05/2009, -0/+5This list needs a lot of updates. The prices on the game consoles are 3 or 4 years old. The numbers have certainly changed by now. They are not taking a loss on these consoles anymore.
- mikedubbs, on 07/05/2009, -2/+7True cost of the goods:
Direct Material
Direct Labor
Overhead
COGS (DM+DL+Overhead)
SG&A
Profit
Total Cost of product (COGS+SGA+Profit)
So the numbers by iSuppli for component costs are way off what these mfg's are paying (I'm guessing they didn't use any sort of economies of scale). E.g. go to Apples annual report and you can see roughly 66% of cost is COGS, 15% SGA & R&D, then 22% profit. These are rough estimates since every product differs slightly but it gives a good company overview for what they do. So for the iPhone 3GS if you plug n' play w/ these numbers and say $179 is for just Direct Material look at how many other cost components are being missed and their associated % of the product cost. By a very rough calculation if the $179 material cost were correct the iPhone 3GS would sell for around >$430. *any proprietary info or value associated is captured in the profit line. - snareguy17, on 07/05/2009, -0/+5I'd say so.
- ProfessorRiffs, on 07/05/2009, -1/+6Is Microsoft's plan to recoup the losses through game sales working?
/not s, actually asking a question. - Treshnell, on 07/05/2009, -0/+5As far as I know, except for, at least, the Wii, video game consoles are typically always sold at a loss. At least for the first few years.
- zeth006, on 07/05/2009, -2/+7Judging from your feeling of need to employ a 4-letter f-word and even misspell it, I'd say you should follow your own advice.
He's right. Post some links to research to back up your claim. Then we'll reconsider the diggs down. - ddorent, on 07/05/2009, -0/+4Give them the handle, make profit on the razor.
- Nudar, on 07/05/2009, -0/+4It's hard to believe that the PS3 still costs so much more than what they sell it for.
- linagee, on 07/05/2009, -1/+5@MacParrot: I'm interesting in knowing what's really custom? The plastic injection molded parts are a given as custom. Maybe a new screen technology, but that can also be OTS just not well known to the average consumer. The battery is OTS I'm sure, the screen (displaying part) is OTS I'm sure, the main micoprocessor is very likely OTS, the RAM/storage is almost guaranteed OTS.
I was actually interested when I saw the plastics to the kindle were estimated at $4.45. Wow that's cheap. - freediverx, on 07/05/2009, -0/+4Hence all the brilliant innovation we see from the heavily outsourced PC industry these days.
- MacParrot, on 07/05/2009, -3/+7Does your PS3 go with you allowing you to make phone calls? If you like the PS3 and feel it was worth what you spent, then why worry what other people think?
- deathandtaverns, on 07/05/2009, -0/+3if a kindle cost $200 I'd probably own one. You'd think that amazon would want everyone to have a kindle so they only bought books from amazon. Either that or like apple they're getting hosed on content by publishers and want to make all their money with hardware.
- ifallen, on 07/15/2009, -0/+3Your opinion sucks.
- MacParrot, on 07/05/2009, -1/+4How many were sold at the same time in a product cycle doesn't always equal profit or even long-term life. How many existing systems are out there? Which one is easier to buy (cheaper)? Which one has better games and a larger library? Which one is easier to program for?
The PS3 is some amazing tech, but Sony priced themselves out of the market with a system that simply was too ambitious. -
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