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I hope people take any BOM costs that might come up with a huge grain of salt. The hardware component costs are only one part of the costs of getting a complex
by antonyme 15y ago
I hope people take any BOM costs that might come up with a huge grain of salt. The hardware component costs are only one part of the costs of getting a complex product such as this to market.
The way people repeat these iFixit teardown costs as net costs and imply that there is a huge margin is utterly misleading (as has happened with various iProducts in the past).
These tear downs are useful and nicely done though - a great resource.
- ugh 15y agoYou are thinking of iSuppli: They do the BOM cost estimates. iFixIt only does tear downs. Easy to confuse, I know.
- johnbatch 15y agoisuppli did a "preliminary virtual teardown" listing a BOM of $209 http://www.isuppli.com/Teardowns/News/Pages/Amazon-Sells-Kindle-Fire-at-Low-Profit-Margin-to-Promote-Online-Merchandize-Sales.aspx http://www.isuppli.com/Teardowns/News/Pages/Amazon-Sells-Kin...
- antonyme 15y agoAh, yes - thank you, that's who I was thinking of. iFixit are a fine mob indeed!
- gamble 15y agoThat's exactly what gross margin is for. The number itself is arbitrary; people are only interested in it so that they can compare against other products from the same company.