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manufacturing costs and profit margin

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tartan

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if the iPod's profit margin and production costs had been worked out many times before, why hasn't anybody done it for himd and minidisc too ?????????

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when himd first came out in australia, each player was rounded to the nearest 99 dollars, the 700 $499 and the 800 $599 etc, the higher the player model, the wider the profit margin as each model's production costs shouldn't vary by that much

$100 for a radio remote, some stores discounting players right from the first day and the massive discounts in later days (possibly at prices close to production costs) makes the original pricing scheme look like a real cash grab

Edited by tartan
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Well, consider the DH10P. Its MSRP is $499, and online retailers are selling it for around $250. If $250 still turns out profit, you'll get the idea of the markup. Plus now most units are outsourced to Malaysia and China, meaning the profit margin would be greater for Sony. How would those Sony execs pay for their suits and cars? :)

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