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		<title>Sticker Shock: The Material Costs of 6 Consumer Gadgets</title>
		<link>https://gajitz.com/sticker-shock-the-material-costs-of-6-consumer-gadgets/</link>
		<comments>https://gajitz.com/sticker-shock-the-material-costs-of-6-consumer-gadgets/#respond</comments>
		<pubDate>Tue, 01 Dec 2009 15:00:06 +0000</pubDate>
		<dc:creator>delana</dc:creator>
				<category><![CDATA[Gadgets]]></category>
		<category><![CDATA[Various Gizmos]]></category>
		<category><![CDATA[consumer]]></category>
		<category><![CDATA[costs]]></category>
		<category><![CDATA[gifts]]></category>
		<category><![CDATA[money]]></category>

		<guid isPermaLink="false">https://gajitz.com/?p=2439</guid>
		<description><![CDATA[<p>If you&#8217;re thinking about picking up a new cell phone, gaming system or other gadget, you might be shocked at the sticker price &#8211; and you might <a href='https://gajitz.com/sticker-shock-the-material-costs-of-6-consumer-gadgets/'>...</a></p>
<p>The post <a href="https://gajitz.com/sticker-shock-the-material-costs-of-6-consumer-gadgets/">Sticker Shock: The Material Costs of 6 Consumer Gadgets</a> first appeared on <a href="https://gajitz.com">Gajitz</a>.</p>]]></description>
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    [ Filed under <a href="https://gajitz.com/meta/gadgets/various-gizmos/">Various Gizmos</a> &amp; in the <a href="https://gajitz.com/meta/gadgets/">Gadgets</a> category ]
    
    <p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-2446" title="cost of popular gadgets" src="https://gajitz.com/wp-content/uploads/2009/12/cost-of-popular-gadgets.jpg" alt="cost of popular gadgets" width="468" height="265" srcset="https://gajitz.com/wp-content/uploads/2009/12/cost-of-popular-gadgets.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/cost-of-popular-gadgets-300x169.jpg 300w" sizes="(max-width: 468px) 100vw, 468px" /></p>
<p><!--wsa:gooold-->If you&#8217;re thinking about picking up a new cell phone, gaming system or other gadget, you might be shocked at the sticker price &#8211; and you might wonder just how much of a profit the company is making on your purchase. Market research company <a href="http://finance.yahoo.com/family-home/article/107263/consumer-electronics-teardowns.html">iSuppli recently analyzed</a> the components of several popular consumer electronics to figure out just how much each item costs to manufacture, and how much of your purchase price goes straight into their &#8220;profit&#8221; column.</p>
<h4>Apple iPhone 3GS</h4>
<p><img decoding="async" class="alignnone size-full wp-image-2440" title="apple iphone 3gs" src="https://gajitz.com/wp-content/uploads/2009/12/apple-iphone-3gs.jpg" alt="apple iphone 3gs" width="468" height="350" srcset="https://gajitz.com/wp-content/uploads/2009/12/apple-iphone-3gs.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/apple-iphone-3gs-300x224.jpg 300w" sizes="(max-width: 468px) 100vw, 468px" /></p>
<p>Retail cost: $199 &#8211; $399, depending on contract length</p>
<p>Cost of components: $179.16</p>
<p>Most gadgets decrease in price with successive generations, but the 3GS actually cost more to make than its predecessor, the iPhone 3G. The rise in cost was due to an improved camera, Samsung applications chip, and the cost of memory.</p>
<h4>Sony Playstation 3</h4>
<p><img decoding="async" class="alignnone size-full wp-image-2441" title="sony playstation 3" src="https://gajitz.com/wp-content/uploads/2009/12/sony-playstation-3.jpg" alt="sony playstation 3" width="468" height="468" srcset="https://gajitz.com/wp-content/uploads/2009/12/sony-playstation-3.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/sony-playstation-3-150x150.jpg 150w, https://gajitz.com/wp-content/uploads/2009/12/sony-playstation-3-300x300.jpg 300w" sizes="(max-width: 468px) 100vw, 468px" /></p>
<p>Retail price: $599 (60GB) $499 (20GB)</p>
<p>Cost of components: $840 (60GB) $805 (20GB)</p>
<p>Sony was willing to take an initial loss on the sale of the consoles in the hope that software sales would eventually make up the difference. Production costs have reduced significantly since the first generation was released, but not before Sony posted a loss of $1.96 billion in FY 2006. They&#8217;ve since become profitable again, but there were almost certainly a few tense months at Sony while they waited for sales to catch up.</p>
<h4>Microsoft XBox 360</h4>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2442" title="xbox 360" src="https://gajitz.com/wp-content/uploads/2009/12/xbox-360.jpg" alt="xbox 360" width="468" height="492" srcset="https://gajitz.com/wp-content/uploads/2009/12/xbox-360.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/xbox-360-285x300.jpg 285w" sizes="auto, (max-width: 468px) 100vw, 468px" /></p>
<p>Retail price (at 2005 release): $399</p>
<p>Cost of components: $470</p>
<p>Just like Sony, Microsoft was willing to bet that software sales would make up for an initial loss on console sales. Their bet worked in the end, with the XBox 360 eventually becoming a profitable venture, though it&#8217;s still outsold by the Nintendo Wii and Sony PS3.</p>
<h4>Amazon Kindle 2</h4>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2443" title="amazon kindle 2" src="https://gajitz.com/wp-content/uploads/2009/12/amazon-kindle-2.jpg" alt="amazon kindle 2" width="468" height="565" srcset="https://gajitz.com/wp-content/uploads/2009/12/amazon-kindle-2.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/amazon-kindle-2-248x300.jpg 248w" sizes="auto, (max-width: 468px) 100vw, 468px" /></p>
<p>Retail price (at February 2009 release): $359</p>
<p>Cost of components: $185.49</p>
<p>The second-generation ebook reader from Amazon has since gone out of production in favor of the International version, but not before annoying lots of people who paid $359 at its release only to watch the retail price fall by $100 in just eight months.</p>
<h4>Apple iPod Touch (first generation)</h4>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2444" title="apple ipod touch" src="https://gajitz.com/wp-content/uploads/2009/12/apple-ipod-touch.jpg" alt="apple ipod touch" width="468" height="313" srcset="https://gajitz.com/wp-content/uploads/2009/12/apple-ipod-touch.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/apple-ipod-touch-300x200.jpg 300w" sizes="auto, (max-width: 468px) 100vw, 468px" /></p>
<p>Retail price (at 2007 release): <strong></strong>$299 (8GB), $399 (16GB)</p>
<p>Cost of components: $147 (8GB), $179 (16GB)</p>
<p>It seems that no matter what Apple decides to charge for its gadgets, plenty of people are willing to pay. The first-generation Touches were buggy, kind of clunky (compared to later generations) and had no external speaker, but buyers didn&#8217;t know what future generations would bring when they rushed out to buy the first-gen Touch. Apple made a tidy profit, then released a much-improved version a year later, which many of those early adopters happily purchased as well.</p>
<h4>Palm Pre</h4>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2445" title="palm pre" src="https://gajitz.com/wp-content/uploads/2009/12/palm-pre.jpg" alt="palm pre" width="468" height="554" srcset="https://gajitz.com/wp-content/uploads/2009/12/palm-pre.jpg 468w, https://gajitz.com/wp-content/uploads/2009/12/palm-pre-253x300.jpg 253w" sizes="auto, (max-width: 468px) 100vw, 468px" /></p>
<p>Retail cost: $199.99 after $100 mail-in rebate</p>
<p>Cost of components: $137.83</p>
<p>Poor Palm. Once on top of the PDA game, their products have largely been pushed to the side of the market by smartphones that allow you to organize your life <em>and</em> order a pizza three different ways. So Palm&#8217;s answer is the Pre, a pretty sweet smartphone that&#8217;s meant to compete with the iPhone. It hasn&#8217;t been out for too long, but sales look promising so far.</p><p>The post <a href="https://gajitz.com/sticker-shock-the-material-costs-of-6-consumer-gadgets/">Sticker Shock: The Material Costs of 6 Consumer Gadgets</a> first appeared on <a href="https://gajitz.com">Gajitz</a>.</p>    
    
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