Comments on: Zune Pricing Announced http://www.forevergeek.com/2006/09/zune_pricing_announced/ Nerds are for Dorks Thu, 18 Mar 2010 05:21:20 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Marco (Griffith) Jardim http://www.forevergeek.com/2006/09/zune_pricing_announced/comment-page-1/#comment-31009 Marco (Griffith) Jardim Fri, 29 Sep 2006 19:36:43 +0000 http://forevergeek.com/?p=3463#comment-31009 I think you're a bit mistaken in this case. Car manufacturers produce almost all of their parts. They have factories they own that provide them with all the pieces they need to pull it together. On the other hand, in the tech industry, most gadgets you know and use are build using various components from various factories. For example, now we all know that Apple's and Dell's laptops use Sony manufactured batteries. The first generation of iPod Nanos used Samsung flash memory, and so on, and so on... The bottom line is, the more components a company builds for itself, the better the profit margin will be. I think you’re a bit mistaken in this case. Car manufacturers produce almost all of their parts. They have factories they own that provide them with all the pieces they need to pull it together.

On the other hand, in the tech industry, most gadgets you know and use are build using various components from various factories. For example, now we all know that Apple’s and Dell’s laptops use Sony manufactured batteries. The first generation of iPod Nanos used Samsung flash memory, and so on, and so on…

The bottom line is, the more components a company builds for itself, the better the profit margin will be.

]]> By: Ben Yarbrough http://www.forevergeek.com/2006/09/zune_pricing_announced/comment-page-1/#comment-31008 Ben Yarbrough Fri, 29 Sep 2006 13:27:10 +0000 http://forevergeek.com/?p=3463#comment-31008 People just do not know how cheaply things are made! A big shot uncle of mine was once told by Ford CEO (as in the grandson or great-grandson of Henry Ford) that the cost of making a car--and I mean total cost, including paying the insurance on the building the cars are made in--is about 1/10 of the ultimate sticker price. This 1/10 figure holds true for most items that are manufactured. Suffer a loss? Their cost is probably around $25 per unit. People just do not know how cheaply things are made! A big shot uncle of mine was once told by Ford CEO (as in the grandson or great-grandson of Henry Ford) that the cost of making a car–and I mean total cost, including paying the insurance on the building the cars are made in–is about 1/10 of the ultimate sticker price. This
1/10 figure holds true for most items that are manufactured. Suffer a loss? Their cost is probably around $25 per unit.

]]> By: Marco (Griffith) Jardim http://www.forevergeek.com/2006/09/zune_pricing_announced/comment-page-1/#comment-31007 Marco (Griffith) Jardim Thu, 28 Sep 2006 21:20:39 +0000 http://forevergeek.com/?p=3463#comment-31007 Suffer a loss at $249? I honestly don't get it... it's features at not *that* great. Suffer a loss at $249? I honestly don’t get it… it’s features at not *that* great.

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