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  • 1 Post By ilovedessert
  • 1 Post By draztikrhymez
  1.    #1  
    Hi all,

    Here are two articles placing the TouchPad at US$318 to US$328 to manufacture.

    Take care,

    Jay

    Article One:

    HP TouchPad Costs $328 To Manufacture
    The TouchPad's display/touch screen accounts for more than one-third of the tablet's total cost. Here's what else teardowns reveal.

    By Eric Zeman InformationWeek
    July 06, 2011 06:25 PM

    HP TouchPad Costs $328 To Manufacture -- InformationWeekHP TouchPad Costs $328 To Manufacture - personal-tech Blog

    Article Two:

    HP Touchpad Has $US318 Worth Of Parts
    By Adrian Covert on July 7, 2011 at 4:55 AM

    HP Touchpad Has $US318 Worth Of Parts | Gizmodo Australia
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
    Carioca_FL likes this.
  2. #2  
    Very nice HP! And before anyone starts (and I'm speaking for myself here), at its current price, I still think the TouchPad is a tremendous value. If the articles are correct, this will only mean that it'll be that much easier for HP to move/bundle them.

    if they can keep costs low for future devices, this could be a game changer.
  3.    #3  
    Quote Originally Posted by Carioca_FL View Post
    Very nice HP! And before anyone starts (and I'm speaking for myself here), at its current price, I still think the TouchPad is a tremendous value. If the articles are correct, this will only mean that it'll be that much easier for HP to move/bundle them.

    if they can keep costs low for future devices, this could be a game changer.
    Hi,

    as my Grandmother used to say, "from your lips to G-D's ears"!

    take care,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  4. #4  
    That's just the cost for the bill of goods. If the materials really cost $328, they're in trouble. Everyone has to end up paying licensing fees for software, probably $30 per device for the rat's nest required. And more money to manufacture it, and ship to the US. HP's cost would up a bit north of $400, and figure there's gotta be about $50 of margin for the retailers, suggesting net margins of about 10%.

    IOW, there's no room for discounts unless HP is prepared to lose money on every device sold. And they just might be.
  5.    #5  
    Quote Originally Posted by jakerome View Post
    That's just the cost for the bill of goods. If the materials really cost $328, they're in trouble. Everyone has to end up paying licensing fees for software, probably $30 per device for the rat's nest required. And more money to manufacture it, and ship to the US. HP's cost would up a bit north of $400, and figure there's gotta be about $50 of margin for the retailers, suggesting net margins of about 10%.

    IOW, there's no room for discounts unless HP is prepared to lose money on every device sold. And they just might be.
    Hi all,

    I would imagine that even if they are cutting it close to the bone or losing, the more TouchPads made and sold, it will bring down the price over time...Moore's law I believe it's called...

    Take care,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  6. #6  
    Well, that's interesting. Very similar to the iPad 2.

    iPad 2: $325.60 Manufacturing Cost
  7. #7  
    Quote Originally Posted by ilovedessert View Post
    Hi all,

    I would imagine that even if they are cutting it close to the bone or losing, the more TouchPads made and sold, it will bring down the price over time...Moore's law I believe it's called...

    Take care,

    Jay
    Just like Sony was losing a lot of money with the Playstation 3 for awhile before they started to profit.
    ilovedessert likes this.
  8. #8  
    There isn't any margin for the retailers, they aren't making money on the TouchPads, just like they don't make money on lots of other consumer electronics. The retailers biggest revenue drivers are accessories and commodity electronics (TVs, freezers, etc).
  9. #9  
    Moore's law has nothing to do with efficiencies of scale. Moore's Law states that microprocessor ability will double about every 2 years. It's broadly interpreted these days as meaning electronic components get small/faster/cheaper at a rapid pace. In 12 months, that screen will be a lot cheaper.

    For HP, they can get better deals if they buy more stuff, and that's just a bit of overlap with the general cost reduction. If HP wants to buy 1 million screens, they'll get a better price than if they just wanted 100,000 since manufacturers will strike a better deal.

    PS3 price drop had not much to do with economies of scale and a whole heck of a lot to do with the massive drop in component prices.

    Retailers may not make a lot on the mark up, but they make a few bucks, no doubt about it. HP isn't selling those TouchPads to BestBuy for $498.
  10.    #10  
    Quote Originally Posted by jakerome View Post
    Moore's law has nothing to do with efficiencies of scale. Moore's Law states that microprocessor ability will double about every 2 years. It's broadly interpreted these days as meaning electronic components get small/faster/cheaper at a rapid pace. In 12 months, that screen will be a lot cheaper.

    For HP, they can get better deals if they buy more stuff, and that's just a bit of overlap with the general cost reduction. If HP wants to buy 1 million screens, they'll get a better price than if they just wanted 100,000 since manufacturers will strike a better deal.

    PS3 price drop had not much to do with economies of scale and a whole heck of a lot to do with the massive drop in component prices.

    Retailers may not make a lot on the mark up, but they make a few bucks, no doubt about it. HP isn't selling those TouchPads to BestBuy for $498.
    HI,

    1. Thank you, I stand corrected about Moore's law.

    2. Not just will HP get better prices for buy more of the components within a product, wouldn't large orders help streamline production to make it more efficient and spur investment into making components that work better and/or easier to assemble etc?

    IE: My office is very small, it was the laundry room, that my wonderful late Dad made into an office for me, with custom designed counters and cabinetry. Since I have a small work space, I ended up getting a LCD screen way before they became common place so about 10 or so years ago. My first one was approx $1,000 now you can get them close to $100! I would think that the price dropped because of competition, newer more efficient ways of building them, and the internal components prices have dropped for the same reasons.

    (I got my first LCD screen before their were standards for universal mounting brackets, the base was too big and wasted valuable work area...so we ended up hanging it on the wall of my office, using stainless steel fishing leader with crimps, and hung it on the wall as if it was a picture frame....)

    take care ,

    Jay
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group

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