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There are NO major companies that manufacture, or assemble their own products. Believe me, I have worked in the industry for 15 years. Example, Cisco pays a company to build...
11-30-2009, 08:40 PM #21
There are NO major companies that manufacture, or assemble their own products. Believe me, I have worked in the industry for 15 years.
Example, Cisco pays a company to build the products, test them according to their processes, program them for the end user, and delivers them.
Cisco gets the check, the 3rd party vendor gets marginal profits.
We made boards for a company, (that I will not name), the total cost after building, testing, etc was $18k, the company sold these boards for $100,000!
The 3rd party vendors all have a krappy contract, and it is not as simple as switching to another company to purchase the parts from. All of them have the same profit margins, in order to stay competitive with other vendors.
3rd party vendors build for more than one company and may have over 200,000 parts in inventory.
And although the prices cited in this article have gone down, it is not significant to us, but only to them and their 2% profit margin.
Apple, nor any other company is going to pass the savings to us, the savings are passed to them. The high prices for the overall product are for the years of development, testing, and cost.
The Following User Says Thank You to hancoma For This Useful Post:
11-30-2009, 09:46 PM #22
Thank you hancoma. I appreciate your info, that's very helpful!
12-01-2009, 05:22 AM #23
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12-06-2009, 09:41 AM #25