With exceptions, was reading recently an interesting die analysis/estimate of the costs and margins of manufacturing of the AD9361 chip (a 65nm, digital radio transceiver, introduced 12 years ago and still selling at retail today for $300/$400):
Relevant quotes (and the current retail price if anything is higher now then when the article was written):
“ Retail price of AD9361 at distributes is 275$, volume price from manufacturer is 175$.
That is quite an impressive added value! For 1,68$ of manufacturing cost we are getting 173,32$ of added value! Even Intel with their x86 or drug cartels could NOT do business like that.”
Of course, the actual margin needs to take into account NRE and other costs (and the above link does get into that) but, in this case, the manufacturing is a tiny sliver of the costs.
https://zeptobars.com/en/read/AD9361-SDR-Analog-Devices-DAC-...
Relevant quotes (and the current retail price if anything is higher now then when the article was written):
“ Retail price of AD9361 at distributes is 275$, volume price from manufacturer is 175$.
That is quite an impressive added value! For 1,68$ of manufacturing cost we are getting 173,32$ of added value! Even Intel with their x86 or drug cartels could NOT do business like that.”
Of course, the actual margin needs to take into account NRE and other costs (and the above link does get into that) but, in this case, the manufacturing is a tiny sliver of the costs.