Max,
You'd be staggered if you knew the real cost of mobile phone hardware,
let alone the GPS etc. Maybe $10.00 is too little, but I can assure
you $100.00 is too much.
Murray G. Arundell
Managing Director
GHS Pty Ltd
Glaziers Hardware Supplies
Brisbane, Australia
Phone: +617 3277 1255
Fax: +617 3875 1256
Email: arundell at ghs.com.au
On 29/03/2011, at 9:54 AM, Max Heim wrote:
> Um, I am sure it is quite a bit more than $10.
>
> Just the 7 to 9 inch LCD screen is going to cost more than that,
> even at OEM
> prices. Then you have a fairly powerful embedded processor, a
> proprietary
> operating system and the GPS receiver. Parts-wise, I would imagine
> it was
> similar to an iPhone, minus the fancy case and battery -- say, $100.
>
> You are right about the profit motive -- that's why they include it as
> standard equipment -- because the "perceived value" lets them raise
> the
> price of the car. Not necessarily public demand for that particular
> feature.
>
>
> --
>
> Max Heim
> '66 MGB GHN3L76149
> If you're near Mountain View, CA,
> it's the primer red one with chrome wires
>
>
>
> on 3/28/11 4:30 PM, Murray Arundell at arundell at ghs.com.au wrote:
>
>> The reality is that cars are built to a price, to be sold for a
>> profit. Manufacturers will only put a feature in a car for one of
>> two
>> reasons:-
>>
>> They are compelled to by legislation.
>> It will sell more cars.
>>
>> If manufacturers are installing these devices without compulsion then
>> its a no brainer that they are doing it due to public demand. Those
>> complaining about the added extra cost imposed upon them when they
>> buy
>> a new car and don't want such features are frankly displaying a lack
>> of understanding of the cost of such items at the point of
>> manufacture
>> and the science behind upselling options. Just because you ask for a
>> factory GPS to be installed as an option and are charged $500-00 for
>> it does not mean that the cost to the manufacturer is anything even
>> remotely close to that figure. The cost of pricing options has
>> nothing whatsoever to do with the cost to the manufacturer but
>> EVERYTHING to do with what the manufacturer thinks the customer will
>> pay. It would be my guess that MG/Ford/GM/VW etc are paying no more
>> than $10.00 for the GPS hardware going into their vehicles.
>>
>> Murray Arundell
>> Brisbane Australia
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