THE BILL OF MATERIALS for a Blackberry Torch costs £111.89 according to Isuppli.
Isuppli dissected the Blackberry Torch to see how much its internal components cost before RIM whacks up the recommended retail price.
The company worked out the bill of materials (BOM) by breaking down only the costs of manufacturing and hardware. It doesn't factor in software licensing, royalties or cost of software development, but includes processor chips, Bluetooth/WLAN/GPS/RF receivers, NAND flash memory, display and keyboard.
"When adding in an estimated manufacturing cost of $12, the Torch's combined production and BOM cost amounts to $183.05," Isuppli said.
Amazon is selling the Crackberry Torch in the US for $99 with a service plan while AT&T has pegged the price $199, also with a two-year service contract. Cheap, but to get a like for like comparison looks at UK costs for SIM free unlocked suppliers.
These work out to mark-up price differences of £416.85 and £383.09, respectively, compared to Isuppli's BOM calculation. Even adding a 50 per cent mark-up on software, licensing and royalties, that's a £200 profit margin.
Research in Motion (RIM) has tried to get back into the 2010 smartphone market with the Torch. Despite getting good reviews, the Torch appears to be a design that would have been a big seller... in 2005.
There were reports yesterday that RIM has already had to drop the recommended retail price in the US because the Torch is not selling well. µ
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