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$9 soc scam

  1. May 12, 2015 #1
  2. jcsd
  3. May 12, 2015 #2
    Where does it say it costs $26?
  4. May 12, 2015 #3
    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
  5. May 12, 2015 #4


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  6. May 13, 2015 #5


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    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.
  7. May 13, 2015 #6


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    +1 for Hepth.

    thanks: are you unfamiliar with single-item retail price versus bulk wholesale price, or the concept if loss-leader products?
  8. May 13, 2015 #7
    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.
  9. May 13, 2015 #8


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    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 !!

    Last edited: May 13, 2015
  10. May 13, 2015 #9
    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?
  11. May 14, 2015 #10


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    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.
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