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Reply-To: "Geraldo Sazias"
From: "Geraldo Sazias"
References: <email@example.com> <3D7F8BFF.5CC55B23@xympatico.ca>
Subject: Re: Examples Of Common MCU's In Consumer Electronics?
Date: Fri, 13 Sep 2002 16:13:20 +0200
X-Newsreader: Microsoft Outlook Express 5.50.4807.1700
NNTP-Posting-Date: 13 Sep 2002 14:16:48 GMT
"Joseph Legris" wrote in message
> Geraldo Sazias wrote:
> > "matt" wrote in message
> > news:xbJf9.84986$%P6.firstname.lastname@example.org...
> > >
> > > "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
> > > >
> > > > 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
> > > > 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
> > million
> > > units/month in mainland China increases the price at least tenfold . I
> > have
> > > seen incredible numbers for products made in China . I have an example
> > > mind (can't tell the company or product due to nda) , it retails for
> > in
> > > US stores, is bought wholesale at $15 by a superstore chain , is
> > at
> > > $5 from China by an importing company . The Chinese are paid less than
> > > the rest is shipping and customs . BTW, it has a PIC inside , a sensor
> > > some other circuitry, I estimated BOM cost here through distribution
> > $40
> > > .
> > I know, it's incredible the prices the Chinese are selling these things
> > I keep wondering whether they're making any money producing these
> > you're building something for $3 the profit can't be more than $0.50.
> > heard rumours that the Taiwanese are satisfied with gross profit margins
> > low a 7%, which probably results in hardly any net profit. I guess
> > 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.
They're rich because the net worth of the company is about 1 x the annual
revenue (including goodwill). If you're shipping hundreds of millions worth
of stuff with hardly any profit to show for it, you can still get a pretty
good price for your shares.
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