3 ms·
As do I. They might be able to pull it off with discounts from their suppliers but I imagine it is difficult to build a sustainable business around that price.
by bravo22 11y ago
As do I. They might be able to pull it off with discounts from their suppliers but I imagine it is difficult to build a sustainable business around that price.
Even assuming 20K volumes:
Current market price for 4GB of flash is about $2.50[1]; 512MB of RAM is about $2[1]. Processor -- even if something like A33 -- would be about $4. You have another $2 of regulator, connectors, etc. The PCB is about $1.75 in volume and assembly would be $1. That's $13.25.
Even if somehow they manage to make this thing really really cheap and get below that price, let's assume $7 or 50% of magical discount on top of current volume pricing, that's not much margin. Even if you sell 100K of these a year (which is very high) you've made only 200K in profit!
EDIT: I forgot about BLE+WiFI -- add $4!
Some are saying PCB pricing is high: I'm basing that on 2.3"x3.3" 6 layer board with 8 mils holes, and 4 mil clearance and ENIG finish.
[1] I'm basing this on recent 50K purchases but here is a more public source: http://www.dramexchange.com/ http://www.dramexchange.com/
- pruth 11y agoI'm interested to know where these estimates come from. You can get PCBs for much cheaper in Shenzhen. Source : A rough quote from http://www.sz-jlc.com/ http://www.sz-jlc.com/ came out to $0.15 for less than 10k boards
- bravo22 11y agoShenzen pricing, 6 layer board with 8 mils holes, and 4 mil clearance. ENIG finish. 2.3"x3.3" Looking at the picture of their board the package is most likely 0.65 or -- possibly 0.4 -- pitch which means much laser drilled holes.
- sajal83 11y agoThey are using much older A13 which retails for $3 on aliexpress...
- kenrikm 11y agoAnd considering aliexpress being more expensive then ordering in bulk that number is most likely more like $2.
- bri3d 11y agoThey're using AllWinner A13, which is quite old now. There's a good chance that since they mention frequently "working closer with AllWinner," AllWinner are dumping their old A13 stock onto CHIP at fire-sale prices, or that AllWinner are moving A13 even further downmarket. I think your PCB and assembly costs are a bit high, as well. I agree that their margins can't be good.
- bravo22 11y agoIt looks like R8 which is based on A13, most likely PoP because I don't see a DRAM or NAND flash in their pic. PCB might sound high, but it isn't standard 8/8/10 spec PCB. It will have smaller holes and tighter tolerances.
- bri3d 11y agoYou're right, and it must be PoP as I don't see any RAM in the picture either. AllWinner must be cutting them a hell of a deal, or (as others have speculated) they must be trying to subsidize the main board with other products.
- bravo22 11y agoI think it is a combination of both. But even then I can't imagine profit of more than $1-$2 per board AT BEST.
- cperciva 11y agoCurrent market price... Remember that they're not going to be shipping for a year. I'm guessing prices will come down over that time.
- joshvm 11y agoLoss leader? They're also selling a load of (presumably) high markup accessories like the display adaptors and the PocketC.H.I.P. which is apparently worth $40.