4 ms·
>We sell a Chinese made Librem 5 phone for $799. We sell the Liberty phone for $2,000. When you're looking at just those numbers alone, that looks like a giant
by DeathArrow 2y ago
>We sell a Chinese made Librem 5 phone for $799. We sell the Liberty phone for $2,000. When you're looking at just those numbers alone, that looks like a giant leap in cost. But there's a couple of factors that are not publicly known when you're looking at just those prices. When you're looking at COGS, cost of goods sold, our Librem 5 phone is equivalent in cost to about an iPhone. It's about $500 and some odd dollars, $550. So we can see that the Librem 5 phone doesn't have a very high margin when we sell it. The Liberty phone, same COGS componentry wise, but to produce it on US soil, we're adding not quite a hundred dollars. So it's about $650 to produce that entire phone.
So the phone that costs them $550 is sold for about $800, while the phone that costs them $650 is sold for $2000. I wonder why is such a big difference in the margins.
- altacc 2y agoThese are interesting numbers and they're oddly buried towards the bottom of the article. A ~20% mark up for mostly sourcing and manufacturing in the US is less than I'd expected, especially given the 250% price difference. He does say something about why that is: > It's the fact that it's a secure supply chain, that you know, staff that's completely auditing every component, which means we're selling to a government security market with all those additional layers that we've added on top. So a mix of marketing and supply chain security. Businesses charge the price people will tolerate paying.