[EMAIL PROTECTED] wrote:
> 
> Hya All,
> 
> I was just woundering, how much does a portable really cost to make?
> For example take the 7XX models....
> 
> Just woundering,
> 
> P.

I don't realy know, the fabrication and materials are normaly cheap. It's
'just a few dollars'. However, before the product is launched, a group of
design engineers and verification engineers developed and tested the
product. I bet it takes more than 3 months and more than 30 engineers during
this 3 months to develop the 70x. (Which is more revolutionairy than the 72x
in design by the way. The 72x is an 'upgrade' of the 70x.)

3 months * 30 engineers = 90 engineering months. The salary of an engineer here
in France starts at about $3000 dollar per months.

Ie, development costs in manhours about $270 000.

But that's not all. These engineers all use a workstation. Average costs:
$5000 per workstation (rent for 3 months). Ie, add to the costs:
30 * 5000 = $250 000

And then they need to work somewhere... A new production (assembly) line needs
to be installed, the product needs to be marketet, etcetera etcetera.

These are all costs that need to be spend before even knowing if the product
is going to be succesfull. And that succes depends on the the price and the
features of the product.

Therefore a group of (highly paid) economist/marketeers analyze the market
and they normaly come up with a number of units that will be sold as a
minimum if a certain price is met. Effectivly, they use a matrix in which
they study the 'break-even' point. Ie, the point where all the units sold
have paided for the development costs!

Cheers,
Ralph -> Who's never skipped economy at highschool...
-- 
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Ralph Smeets        Functional Verification Centre Of Competence -  CMG
Voice:  (+33) (0)4 76 58 44 46                       STMicroelectronics
Fax:    (+33) (0)4 76 58 40 11                       5, chem de la Dhuy
Mobile: (+33) (0)6 82 66 62 70                             38240 MEYLAN
E-Mail: [EMAIL PROTECTED]                                      FRANCE
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