Quote:
Originally Posted by HarryT
They have to recoup the R&D costs, though. Even though the Fire seems to be largely based on the Blackberry Playbook hardware, I'm sure that those costs were not insignificant.
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i think the estimates of BOM below $200 are correct. but there are more costs as you say and some of them are piled on at the beginning of sales like the r&d on the firmware, the boxing and advertisment costs, the importation costs etc etc. so they may be losing some on the fist "few" but the more they sell the sooner they amortize those residual costs and the later runs will be purely hardware and profit.
for instance Samsung just announced an upgrade to the Tab 7.0 . some people wonder why but its really a no brainer. they have already recouped the costs related to development etc and the minor upgrade costs followed by a longer sales life allows them to increase their profit for the device
Quote:
Originally Posted by molman
Still personally doubt it, but really were unlikely to ever really know so as Kali Yuga said, what does it really matter.
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actually i wish more people would have a better understanding of the BOM on all the gadgets. So every time a new device is launched there would be less people expecting a retail cost below any chance of profit.