Intrinsic said:
Ok, Let me just make this simple for you..... Take the ONePlus 5T. Snapdragon 835 SOC, 6GB of Ram, 4g LTE and Wifi Radios, BT 5.0, USB type C, 64GB of storage, 1080p AMOLED Screen costs around $299 to make. Is sold for $500. The same components (better with regards to the screen rez, same SOC, worse with regards to amount of Ram) used in making the samsulg galaxy S8 plus, but somehow that phone costs $800 at retail. Meanwhile, most of the parts in that Oneplus 5T are even made by samsung. So you really believe that it costs samsung $300 more to make their own phone that is basically using the same parts? Or that samsung somehow makes more reliable phones than ONEplus that justifies their mark up. NO. Thats not why these things cost what they do. |
I understand what the concept of a profit margin for a product is. However, are you seriously suggesting that Nintendo is taking a $50 system (or even say $100 system) and marking it up to $300 and then telling their investors that they are only making a very slim profit on each unit (not to mention their earnings reports do not in any way have profits that would match up with selling a high volume product at a $200-250 profit margin; even a $50 profit margin for Switch would have resulted in much bigger earnings than what they presented) ? Also, one thing that I do not understand, is that you are using a component breakdown analysis for the cost of production of the OnePlus 5T yet when Rol gave you a similar analysis for the cost of the Switch you refused to believe it.