Hardware Prices - a mystery!

@ 2005/06/26
The author discusses the current pricing structure of computer hardware and tries to find out why some things do not line up.

"True, some cases are really very very cleverly designed and a pleasure to build a system into, [...]
Whereas a processor took hundreds, if not thousands, of engineers with countless diplomas ages to develop, has thousands of patents implemented and needs clean room assembly by skilled workers with high wages, and millions worth of machinery to produce."

Link:
Comment from Rutar @ 2005/06/29
30 with shipping
Comment from Sidney @ 2005/06/29
Comment from Rutar @ 2005/06/26
But it's true about quality stuff paying off.
Comment from jmke @ 2005/06/26
when you buy a case you're not paying for the case itself only, you pay for the name tag, the transport costs, the storage, the workers, the marketing, etc

this all adds up
Comment from Sidney @ 2005/06/26
Oh well, I heard what he said. May be he should work in a chip/processor plant for a couple of years and follow with two in metal stamping process will he know what he is missing. Provided his formal education allows him to hold middle management role in the plant.

One thing for sure, the engineer working for Intel or AMD may not have the easy access as he does in letting so many people hear what he doesn't know, and the assumption he is making. Thanks to the Internet review sites in recent five years

Let's don't even bother to look into any technical issues - such as processor manufacturing setup; automated process with hell a lot few operators in a given plant to product millions of end product identical in design.

1) One ocean standard container will hold XXXX number of ATX cases versus XXXX millions of processors = freight cost

2) Warehouse storage of the two.

3) Packaging cost of the two.

I am talking about logistics here of the two; and give it a little thought of the cost difference.

The guy who gave up driving his/her tractor could be just as easy to become an operator running an IC stitching machine in a processor plant; because he/she has an open mind to learn rather than sitting down and writing B/S.

Lastly, the pricing structure has more to do with marketing more so than the workers producing the products. Don't forget Intel has over 60% gross margin. With worldwide production of over $150 million processors annually, Intel is holding >80% of the market. How many Case Mfg are there? If you allow Intel to hold 80% of the market, I am confident the case price will come down. There is a very simple answer; go buy a Dell complete system for under $500. Tell me how much the case cost.

 

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