Eve team believes that most of the consumer electronics in the market are overpriced due too very old fashioned ways of selling and marketing the devices. Its all about that middleman involved in the sales process before device gets to your hands:)
We are quite knowledgeable about BOM costs (bill of materials a.k.a production prices) of most of the flagship devices on the market. It sometimes gets us angry to see how overpriced devices are. We are furious that we have to pay so much and get so little. And then when you pay premium price something like this happens:
So I decided to start a topic (for great discussion and surprise) about production prices of various devices.
So here are the rules:
We or you start a topic asking what production price certain device is.
You try to guess (Please no cheating! If you google it you might find it but then all the fun will be gone )
And then we see what happens!
Feel free to start such topics in Community yourself. We would be happy to give our wild guesses about production price of your favourite devices!
What’s the production price of the Lumia 950? 200$?
For the Lumia 950 it should be around $170. For the Lumia 950XL, it should be around $205.
The reality is, that for the volume that MS has purchase orders for, the 950 ends up around $210 and the 950XL ends up around $245. Just a shame…
It is a shame… Why does the cost rise so much? So the rest of the money is pure profit?
It’s the difference in a Purchase Order of 10k-15k units vs. the now standard Samsung, Apple, Xiaomi, Huawei orders of 400k-600k units per production batch. Simple economics. As far as the profits go, I have no problem in a company making huge profits, when they deliver a quality product that has a huge demand. Both phones from MS should be in much higher demand for what they are…unfortunate that it isn’t working that way for MS.
well, then you have to take into account supply chain costs, cost of running retail stores, etc.
This is why “the media” is always talking about how much money Microsoft loses on the phone business.
Ok, so what’s the production cost of a Surface Pro 3 (and as comparison, the new Surface Pro 4, since some specs have changed, like physical Windows button)?
Here’s one: Production price of the iPad Pro vs. the entry level Surface Pro 4.