5 ms·
2.5x doesn't seem like a useful way of looking at it. It's $0.24 vs $0.49. What kind of devices are these things going in? It matters if the rest of the compone
by losvedir 9y ago
2.5x doesn't seem like a useful way of looking at it. It's $0.24 vs $0.49. What kind of devices are these things going in? It matters if the rest of the components are $1, not so much of they're $10.
- SAI_Peregrinus 9y agoA lot of the devices they're going in are at or below the $5 retail price. So the COGS has to be under $2 to make a reasonable profit. That doesn't leave much room to waste money on your BOM.
- coupdejarnac 9y agoFor very low quantities, the price difference won't matter much.. If you're selling hundreds of thousands or millions of something, suddenly that is real money that justifies the incremental increase of engineering effort to use a cheaper part.
- jimmyswimmy 9y agoI used to sell parts to Compaq when they made their own server boards. Design manager was trying to iron millibucks out of the BOM cost. That's tenths of pennies. It matters even if you're charging $100. Those pennies add up when you're selling 10-100ku per month on multiple product lines.