Jul 6, 2009

Businessweek provides device teardowns

Courtesy of Businessweek (sourced by Yahoo Finance), here's a list of consumer electronic teardowns which can give you an idea of how the company and their positioning of their devices. For more details, refer to this Yahoo! article.

Apple iPhone 3GS
Retail price: Starting at $199
Cost of components: $179.16

Palm Pre
Retail Price: $199.99 after $100 mail-in rebate
Projected Cost of Components: $137.83

Amazon Kindle 2
Retail Price: $359
Cost of components: $185.49

RIM Blackberry Storm
Retail price: $249 before rebate
Cost of components: $202.89

Apple iPod (1st gen)
Retail price: $299 (8GB), $399 (16GB)
Cost of components: $147 (8GB), $179 (16GB)

MS Xbox 360
Retail price: $399
Cost of components: $470

Toshiba HD-DVD Player
Retail price: $499
Cost of components: $700

Apple iMac, 17"
Retail price: $1,299
Cost of components: $898

Sony Playstation 3
Retail price: $599 (60GB) $499 (20GB)
Cost of components: $840 (60GB) $805 (20GB)


This explains why Sony is so reluctant to reduce PS3 console prices despite game companies' protests - they're already losing more per console than MS is and I guess they don't expect the increase in console sales to help their game sales' commission all that much.

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