# $9 soc scam 1. May 12, 2015 ### thankz 2. May 12, 2015 ### Greg Bernhardt ### Staff: Admin Where does it say it costs$26?

3. May 12, 2015

### thankz

ti's website, mind you that was for just one version of the arm microcontroller but with the extra logic needed to support the peripherals I don't see it being any cheaper.

cheap cell phones is what I would compare this to but they make those by the million and sell at cost to later get the money back in service fees.

Last edited: May 12, 2015
4. May 12, 2015

### SteamKing

Staff Emeritus
5. May 13, 2015

### Hepth

The price TI charges the public for a single chip and the price they charge a vendor who orders 3 million of them are easily an order of magnitude off.

6. May 13, 2015

### DaveC426913

+1 for Hepth.

thanks: are you unfamiliar with single-item retail price versus bulk wholesale price, or the concept if loss-leader products?

7. May 13, 2015

### thankz

yes I'm familiar with those terms, I'm trying to find an on-line vendor of allwinner chips, the chips used and there doesn't seem to be one that's obvious.

i'll stay skeptical.

8. May 13, 2015

### davenn

you shouldn't really as it's a totally valid reason

consider how they can sell DVD players for $39 when the combined retail price of all the parts would be$400 - 500

and that $39 includes manufacturing, freight to wherever in the world and markup by the wholesaler and retailer The manufacturing cost can only amount to a max of around$15 !!

Dave

Last edited: May 13, 2015
9. May 13, 2015

### thankz

your right about that, I've noticed with consumer electronics that they seem to be giving this stuff away. maybe it's a conspiracy meant to employ the Chinese, limit fossil fuel usage (though I don't see how) and keep the poor pacified?

10. May 14, 2015

### Staff: Mentor

I think you already answered your own question with post #3: it's the cell phone model.

Similarly, on cars most of the profits come in selling options: the standalone GPS option on my car was \$1400.