How can the 'Chip' computer be sold for $9 when the processor alone costs $26?

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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.
 
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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.
 
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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?
 
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.
 
thankz said:
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 sceptical.

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
 
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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?
 
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.