manufacturing cost
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HP TouchPad parts analyzed, manufacturing cost similar to the iPad 2
We know what's inside the TouchPad and we know just what it's like to live with the culmination of those parts, and now Isuppli is doing its best to figure out just what those individual components set HP back each time one rolls off the assembly line. According to that firm's analysis, the grand cost to build a single $599.99 MSRP, 32GB TouchPad is $328. That's but $12 more than the 16GB version, which of course retails for $100 less at $499.99. That $328 cost is quite comparable to a 32GB iPad 2, which tallies up at $326 in 3G form according to the source. In other words, HP seems to be maintaining similar margins to Apple, begging the question: can it afford to do so? [Image credit: TechRepublic]
Analyst says Wii manufacturing costs down 45% since launch
Since the Wii released in November of 2006, it's progressively become a more profitable venture for Nintendo. Not just because it has been constantly flying off retail shelves, but because Nintendo has managed to drastically cut down manufacturing costs during its life, Koya Tabata of Credit Suisse suspects. In fact, Tabata says costs are down a whopping 45%, which could mean Nintendo is banking much more than the previously reported $6.Of course, any talk of reduced manufacturing costs is inevitably going to lead to talk of a price cut, which Tabata says is a real possibility. Emerging markets could be the first to see a price cut, Tabata commented. With Sony hoping to take market share away from Wii with its $99 PS2, it might be the right time for Nintendo to trim some fat.[Via Eurogamer]
Sony could break even on PS3 in '09, finally get agressive with pricing
Back in January, Sony Computer Entertainment president Kaz Hirai told Reuters that he'd very much like the company to turn a profit on PlayStation 3 in early 2009. Going by a new report on the actual manufacturing costs of the system, Hirai may get his wish.BusinessWeek reports that the PS3 – which cost Sony a whopping $840 to produce in 2006 – has, through a reduction in parts and cost thereof, reached a price of $445 assembled. Sony was losing more than $200 per system sold back in the fall of '06 ... and it has now gotten that figure down to about $45. This was achievable by scaling back its inner-workings from 4,048 parts then to 2,820 today (losing backwards compatibility with PS2 games along the way). Also, the system's Cell processor, which cost Sony $89 at launch, is $46 now.It's good news for Sony and its shareholders, who have been watching profits sink for some time. It's also good news for gamers; continued cost reduction on the hardware could spell a price drop on both SKUs by summer of 2009 – and potentially even more aggressive pricing this time next year. (Fun fact: although it might seem like the retail price of PS3 isn't dropping as fast as PS2, both systems dropped exactly $100 during their first 24 months on sale.) [Via PS3 Fanboy]
