tarheel91 said:
greenmedic88 said:
tarheel91 said:
greenmedic88 said:
IamAwsome said:
Either the PSV's tech is oder then we thought, or Sony is selling this at a huge loss. |
Neither. A lot of people just overestimated the BOM on the devices without actually sourcing comparable parts.
Not made out of melted down gold bricks. Entry model probably has a BOM of about $200 and I'm willing to wait for iSuppli to do their breakdown for confirmation.
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BoM is not all that's involved in an item's cost to produce. Assembly and shipping also play an important role.
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Thank you for stating the obvious.
Now for another obvious statement; the BOM determines profitablity or loss of virtually every electronic device not subsidized by carrier services.
You know this. I know this. Everyone knows this, so let's not try to change the standards by which the price of production linked to the MSRP is linked to profit/loss per unit.
And as for assembly costs, which may be little less known than BOM although they shouldn't since they are typically listed with services such as iSuppli; they typically add less than $10 to the individual cost of each unit for a device such as the Vita, iPhone, iPad, etc.
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Just pointing out another issue with the way "analysts" try to guess at the profitability of these machines. Do we count quality check? Operating costs of the plant? Not to mention we have no idea what kind of contract was reached between Sony and its suppliers. There are so many variables that are fudged or unknown that these guesses are practically useless in anything more than profitable or not profitable, and in cases where its this close, you really can't say.
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As far as determining BOM breakdowns on devices go, it has little to nothing to do with the "analysts" you seem to be indirectly questioning.
The breakdowns are done by engineers familiar with all the components that go into building said devices down to individual chips by make and model.
So if iSuppli gives an estimate of $103.25 on the Nintendo 3DS for example, it's a pretty sure bet that they're not off by any significant amount. They've been doing this for awhile and the breakdowns go further on a component to component basis down to part type, supplier, manufacturer, origin of manufacturing, etc.
FYI: the manufacturing cost on the 3DS is an estimated bank breaking $2.54.
