Cost of components

[gruve]

what-your-gadget-really-costs: Personal Finance News from Yahoo! Finance

Interesting article, not sure if this has been posted. Moto Droid costs $185 to make.

Nexus One, HTC makes $5 per phone.

 

[takeshi]

Meh. I personally don't find such info all that interesting. The cost to produce is much more than just the cost of components. The components don't perform their own R&D, marketing, distribution, etc.

 

[Jeremy556]

Nexus One, HTC makes $5 per phone.

They have a gross margin of a lot more than that.

The under $200 price that people pay for these phones is a subsidized price. If you just walk into a store and want to buy the phone without a contract, it is closer to $600.