Andrew Kohlsmith wrote:

On Monday 05 June 2006 11:03, trixter aka Bret McDanel wrote:
Again, 10k channels you'll have a half dozen MaxTNT boxes terminating
DS3s. Your fixed costs will already be significantly higher and that
little $10 license fee is included in that.
Its not $10, which also goes along with something else I mentioned
elsewhere.  Digium charges $10 but the max cost for a g729 license is
about $1.25.  It goes down to about $0.10/license in quantity.  As such
it doesnt add a whole lot to the cost of the device once the initial
code is in place (as that development does have cost since the license
fee doesnt cover any implementation, only the right to sell that
implementation).

Stop the presses: quantity purchases get price breaks! High enough quantities let you deal with the "manufacturer" directly!

This is news how?

I can buy a PIC16F877 for $13.23 in onesie-twosie quantities. If I'm willing to buy them in 100 quantities I can get 'em for $7.32 apiece. That's damn near 50% less. If I commit to buying an entire reel (1200) of them, my price is $5.61.

Now let's stop fucking around and go directly to Microchip. I want a mask-ROM PIC and commit to a minimum order of 1M pieces. What do you think my price is? I'm waiting for the email from their quoting department (and likely will get a "we don't offer a masked ROM version of the 16F877", but I also asked for a masked ROM version of the PIC16C77, which I know they do make) but I'm willing to bet it'll be around $2 apiece.
If you'll pay $2 for a million off of the PIC16C77 you must be a very very rich main. Anything over $0.70 would be a serious ripoff.

Regards,
Steve

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