From: Joseph Legris
X-Mailer: Mozilla 4.77 [en]C-SYMPA (Win95; U)
Subject: Re: Examples Of Common MCU's In Consumer Electronics?
Date: Wed, 11 Sep 2002 14:31:27 -0400
NNTP-Posting-Date: Wed, 11 Sep 2002 14:25:41 EDT
Organization: Bell Sympatico
Geraldo Sazias wrote:
> "matt" wrote in message
> > "Lewin A.R.W. Edwards" wrote in message
> > news:email@example.com...
> > > "Geraldo Sazias"
> > > > Can someone cite some examples of 'common' (frequently used by
> > hobbyists)
> > > > MCU's (AVR,PIC and MSP430) being used in consumer and or mass produced
> > >
> > > I asked the same question of a Microchip rep, since PICs are always
> > > far too expensive for our projects. He said that Visteon uses them in
> > > automotive electronics. I've also seen PICs used - OCCASIONALLY - in
> > > smart batteries. I believe a PIC is also used as part of the
> > > authentication hardware in the Microsoft Xbox.
> > buying small quantity through distribution in the US versus making a
> > units/month in mainland China increases the price at least tenfold . I
> > seen incredible numbers for products made in China . I have an example in
> > mind (can't tell the company or product due to nda) , it retails for $35
> > US stores, is bought wholesale at $15 by a superstore chain , is imported
> > $5 from China by an importing company . The Chinese are paid less than $3,
> > the rest is shipping and customs . BTW, it has a PIC inside , a sensor ,
> > some other circuitry, I estimated BOM cost here through distribution at
> > .
> I know, it's incredible the prices the Chinese are selling these things for.
> I keep wondering whether they're making any money producing these things. If
> you're building something for $3 the profit can't be more than $0.50. I've
> heard rumours that the Taiwanese are satisfied with gross profit margins as
> low a 7%, which probably results in hardly any net profit. I guess they're
> just satisfied with the employment and shipping things around.
I don't think so. There are many very rich Chinese and Taiwanese who got
that way by owning factories, not by working in them.
If a Chinese factory pays US$100/week for a 60 hour week for
semi-skilled assembly work, a $3 product might have 50 cents worth of
labour. The 7% gross margin of 20 cents looks pretty good if there is an
order for 100,000 units, which is just 3 days production in a factory
with 1000 workers. Potential yearly gross profit: US$2 million.