Master of the 'teardown', Eric Pratt from iSuppli Corp. specializes in stripping down gadgets and finding out how much they're really worth. Eric brought three of our favorite gadgets to dissect: the Mac mini, the iPod Nano and the Game Boy Micro.
The Mac mini which retails for $499 is actually worth $283 in parts and labor.
The 2 Gig iPod Nano retails for $199, but is actually worth $103 in parts and labor. The most expensive component is actually the iPod Nano's 2 Gigs of memory.
Eric finished up with a G4 exclusive teardown of the Game Boy Micro which retails for $100. The actual cost of the Micro is only $44. The screen on the GB Micro is actually the most expensive component.
Find out more about iSuppli on their website.
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Comments
Displaying -19– of 17
mexflyboy
I do think the Presenter dude is a dork... he kept focusing on cost of materials when talking to the iSuppli guy, but he never asked the guy his educated opinion on what else is involved in the cost of a product. After all, a product is more than just chips and plastic, it's marketing, distribution, research and development, factory/office rents, salaries of everyone involved, and profit too (after all, most companies are in the business of making some kind of profit, they're not idiots)... but I think the presenter made it sound as if any idiot could create a GameBoy Micro off the shelf, which just ain't true!
SINSEEKER_007
I just got done watching the G4 special report on game violence. What a JOKE, for people to say that game violence is the cause of all the crap that is going on in the world makes me sick !!
Video games have nothing to do with the stuff that is going on in todays world, it is the goverment and there greed that is the main cause of this messed up world.
So to all those people that blame the video games, wake up and stop trying to shift the blame on to something else and start looking at what the real cause of all the violence in the world today.
Take a look at the movies, TV shows, Magagines,
and even the radio and tell me video games are the reason for all the violence.
As for the kid on the report saying that video games were the cause of the columbine shootings, PLEASE !! get a grip !
n0thanky0u
It's a very basic thing here. They have determined the Fixed costs of only the components here + Labor, basically just as an fyi for all of us. Why do all the freaking posters have to 'take it out on the man' or whatever.
The manufacturer has all kinds of behind the scenes overhead costs, other Fixed costs, as well as Variable costs. You then have to sell your item FOR A PROFIT to a retailer. So they factored in all the costs I just mentioned above, added them to the component costs that A.O.T.S. figured out, and then marked the item UP.
The retailer they sold it to, then MARKS IT UP, after factoring in their Fixed, Variable, and Overhead costs into the unit as well. They both make money while providing us with a relatively inexpensive peice of technology.
If you can't handle the company making money off the items they sell, you are in for a world of hurt, because that is the single principle that keeps this world turning in circles.
Daenris
So... are the people making these comments just stupid or what? They're saying the hardware costs for the Gameboy Micro are $44... they're not saying that's what it's sold for. It states right there that the retail is $100.
Hollis
Wow you guys are idiot. What about the millions of dollars Nintendo and Apple spend on firmware/software, research, when you buy a product, if you expect to pay for the raw materail cost on stuff, you're an idiot. You pay the sallarys of the people who make it too.
Robo-Raptor
I think ill pick one up.
smoked_glass
To tell you the truth, the Micro is only useful for people who travel and want the same fuctionality of the GBA SP in a smaller form. I've found that after I tried the Micro, I liked the feel of the SP a lot more. And it's not like I travel all the time.
Anyway, anyone who wants a Micro should definately look into the $44 pricetag from these guys; that's a great deal for the newest GBA.
Robo-Raptor
44$ Come on not that bad...well i rerally dont no its kinda crazy for that little thing Hmmmm i really dont no its less than a Bran new game sooo...
sithmaster
only $44! damn i should just make my own micro
skybuddah4
i agree with sentinelone, but how else are they gonna make there profit
sentinelone
Just proves how much these companies are ripping consumers off. Of course you can ask any suit, and they'll tell you that what is missing is advertising costs, manufacturing costs, packaging, shipping, etc.
James_Montagna
Kevin was holding the same Famicom GameBoy Micro that I have. It's the slickest looking one!
I bought a black bordered US GameBoy Micro, but after I saw the Famicom one, I bought that as well... so now I have two. :P
athomemama
Years ago when I was a starving college student, I sold furniture for Rhodes. They charged between 300% and 400% markup for furniture. A 100% markup doesn't seem so bad to me, when I factor in salary, testing, mktg. etc.
Robo-Raptor
Man Game Boy Micro is only 44 bucks i can see that i thoght Ninendo was going to go crazy and make it like $70$ alright well that not bad i guess.
Robo-Raptor
/\/\/\/\/\/\/\/\/\/\/\/\/\/\/\ /\/\/\/\/\/\/\/\/
I own all of these indain tents.
darth_gumby
well, it's all supply and demand. if people are willing to pay the extra, and you're willing to raise the price, that is more to you. Now if the people would refuse to pay the extra price, they would have to lower it. So here's a plan, tell everyone to hold out on a product until it's really cheap, because until they sell they won't get money, and they want money.
Robo-Raptor
Only if i had money......Im still confused on that last blog?
Displaying -19– of 17
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