What Do Your Gadgets Actually Cost To Build?

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Nickgrnt

I really don't know what the gadgets actually cost to built, however, I am sure that nowadays the technology is getting more and more futuristic and is worth the money we pay. The two phones iPhone and Samsung Galaxy S are the worth the price. I own the Blackberry Bold 9780 and Samsung Galaxy S and must say the quality and features included in it are worth the price I have paid.

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imagonex

The iPad appears to have the highest profit margin. 56% profit or approximately $279.

It would've be nice to see the "actual cost" vs "retail price" of Apple PC's vs other brandnames such as DELL, HP and others. I wouldn't be surprised if their Macintosh PC's also have a higher profit (or markup) than the competition. Apple is notorious for marking up their products more than others.  

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thematejka

never mind the game prices of x360 and such, but it's not the only way microsoft makes money lost on selling their consoles so cheap. Vendors have to pay microsoft just to have the xbox name, brand, and picture on their games, for every single individual game. If a game sells 1000000 copies, and ms makes $2 a game on just the logo being on it, ms makes an easy 2 million. Which makes up for the low price console sales by far

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MRrelabled

I wouldn't think costs are a constant, first production costs more but later production is profit.  

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avenger48

They haven't made a 60GB PS3 for 3 years, and they no longer make a $400 X360 SKU. Also, last I checked, a PS3 slim's components totaled to ~$325.  As for the other devices, I suspect that only the newer ones are accurate, although I don't really know.  

 

EDIT: just noticed that you noted this.  You may just want to remove the consoles, as they are ludicrously out of date. 

 

From Businessweek: "

Sony

PlayStation 3

Date: Nov. 17, 2006"

yeah.... 

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bikerbub

microsoft is losing money with the 360. With the number of failures they have to repair, there's no way they're making money on the consoles. They do, however, probably make up for it with Xbox live, whereas sony is losing money on both the console and PSN.

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Walnut

The failure rates on the new chipsets are WELL below launch rates. The last figure I saw pegged it at no higher than 4%, and that was at least a year ago.

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fuzz_64

Surely those console prices are wrong, no?  I recall seeing similar cost numbers several years ago.. they've had a few years to get the prices down.. I can buy a PS3 in Canada for $299 (not sure where the article's MSRP of $599 comes from) so SURELY they're not losing around $600 CAD per unit?!?!?!

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avenger48

$599 was the original, launch, 60gb PS3 price.  This SKU hasn't been produced for around 3 years.  I believe they lose a small amount on the $299 slim's, but actually make around $50-$75 USD on the 500GB slim's. 

 The reason for the price reduction has been feature-cutting, (hardware backwards compatibility, card readers, etc.) and just general price drops on components (laptop hard drives, cell processors, RAM, blu-ray drives, all have gotten cheaper since 2007.)  

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QuakindudeMod

You have to keep in mind that consoles are like gas stations. They make little to no money on the gas, but it's what's inside the store that counts.

Consoles have, for the last five years +, cost more to make than what they sold for. And that reason has already been explained here. The games, online services and equipment are what they make their money from. I would certainly sell my $20,000 car for $15,000 if I knew I could make another $30,000 down the road in maintenance and "add-ons." 

The cost of the consoles when they first launched are very integral to the story line. The prices of the other objects are also from when they first launched, so you have to keep data integrity by showing the same prices for all items during their life time. 

If Microsoft and Sony are making $$$ on the consoles they sell today, I would be surprised. They've cut corners, removed features and brought the basic console price down only to get your ass when you upgrade or add on to it with more controllers, larger hard drives, memory cards, wireless dongles (In the case of the Xbox) and games. But also, the cost of making them has come down too, so the gap of losses has lessened I'm sure. But like I said, I bet they aren't making any money off the consoles just yet. From the beginning, the consoles were sold for less than what they cost them to manufacture. You still have to factor in the cost of all the R&D that went into each console. 

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optionboy16

What I REALLY want to know is how much is a controller?  Headset?  Battery charger?  Wireless adapater?  Overall costs of Xbox live maintenance is?  What about those hard drives? 

 

I've bought all of those things, plus whatever was on the Xbox Live/Zune store...I didn't have cable for a year.  I guarantee you, Microsoft is in the black from me...

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riopato

Looks like you really get what you pay for! Good job Sony and Microsoft! Now about those game prices....

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nekollx

 you mean their only way to break even?

------------------------------
Coming soon to Lulu.com --Tokusatsu Heroes--
Five teenagers, one alien ghost, a robot, and the fate of the world.

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To0nces

Game prices went artifically up for the current gen. Xbox 1 already had live, and it was 50 dollars a year. Plus, they sell tons more content on Xbox Live for the 360 then they ever did with Xbox 1.  They pushed the pricing of games into the $59.99 range when it had been $49.99 for years. Yes, the tech is more advanced now, but you have to remember that when the old gen consoles came out, even that meager tech was still new and costly for its time. $59.99 price tags are just to squeeze blood from a turnip.

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nekollx

 Right and what could $50 get you 6 years ago. I'll wait.

You see theres this little thing called Inflation. It's why our Comic books cost $3.25 now instead of $0.10... 

------------------------------
Coming soon to Lulu.com --Tokusatsu Heroes--
Five teenagers, one alien ghost, a robot, and the fate of the world.

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