On 2008-01-08, Jack Hamilton <jfh@acm.org> wrote:

>>So explain why I picked up a couple Verizon InPulse Samsung
>>A870 phones at Walmart for $50 each. I'm *sure* they're worth
>>more than that.
>
> I'd be surprised if they cost more than $25 to make, but exact
> cost information doesn't seem possible to get. Many people
> claim that phones really "cost" the $200-$500 that carriers
> charge, but I don't believe it. Why would phones be the only
> consumer electronics devices that don't have a huge markup?

Of course they have a huge markup. Everything has a huge
markup. Just because it cost $50 to make that TV doesn't mean
you're going to be able to pay less than $250 for it. We
engineers who design stuff like that don't work for free.
Shipping from Asia isn't free. The cost to "make" something is
often trivial compared to the cost to develop it, package it,
ship it, and distribute it. Funny thing, but everywhere along
they way, everybody want's to eat. If you think you can make
and sell cellular phones for $50 and still make a profit
without any of the income stream from the service, then go
ahead and do it. You'll be rich and famous.

--
Grant Edwards grante Yow! I appoint you
at ambassador to Fantasy
visi.com Island!!!