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> BOM costs make or break mass market hardware products. You don't just add 50 cents of BOM to a mass market item without a real good reason.

I guess the question is, why is that so?

IMHO, a valid "real good reason" is fixing a product/technological UX regression. However, it seems American business practices have settled on shamelessly selling the cheapest acceptable product for the highest acceptable price. If cheaper means a little crappier and enough customers will put up with it, cheaper it is. I'm dissatisfied with it because it usually means the stuff I buy is less durable or lacking on some fit-and-finish area.



I think you and your OP are both correct.

50 cents x 4, along with the other increase likely $5+ of BOM cost increase could make or break a consumer product. But your reason is also true as it improves UX.

This is where innovation and Apple comes in, you need to market the product with a features that masses of consumer believes in it and are willing to pay for it. ( Lots of people, including those on HN often mistaken innovation as invention )

There is nothing "American" about this business practices, it is the same as any European, Chinese or Korean Manufacturers. They could have very well put this feature in but I am willing to bet $100 it wouldn't make a difference to consumer's purchase decision. So why continue to add $5 or more for a feature they cant sell.

But Apple has the ability to move consumers, and to charge higher ( as a package along to this feature ) to demand a premium. And if Apple successfully market this feature, say with some sort of brandname like "QuickSwitch", it is only a matter of time before other manufacturers copy it.


Go look at all the failed hardware-based kickstarters for why BOM costs matter.

It has nothing to do with “American Business”. Just a fact of life in a competitive market.

Is it worth spending an extra 2-5 million in tuner chips so 100 million set top boxes can channels can change faster? You tell me?




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