Why $500.00 UMPC is not yet there?

There has been a lot of discussions on the pricing of the UMPC, Linda over at TabletPC2 has given a detail explaination of the reason behind why UMPCs cost this much and why it can not be lowered. Most of all why it is worth every penny – A Good analysis

[...] In the summer of 2005, there were a few companies offering ultra-portable notebooks. Companies like Sony, Fujitsu, OQO, and Motion had success offering these small machines to professionals. These designs usually cost just over $2000. The industry saw a value for a similar style system for consumers at a lower price. [...]

HARD COSTS
  Processor $125.00
  Operating System (100.00 – $125.00) $100.00
  Hard Drive (average of 2.5″ – 1.8″) (85.00 – $135.00) $85.00
  7″ Screen (glass) $95.00
  Display (Touch pannel) $85.00
  512 RAM $40.00
  Motherboard $25.00
  Video Chip $30.00
  Battery $30.00
  Included Accessories (cables, cases, headphones, power, cleaning cloth) $25.00
  Overseas Freight $19.00
  Restore CD and User Manual $8.00
  Microsoft COA, Manual and backup CD $6.00
  Plastic Casing $5.00
  Packaging $5.00
  Packing Materials $4.00
 
Total:
$687.00
AMORTIZED COSTS  
  Tooling Costs $50K – $100K
  NRE Cost $250K – $500K

Here is our take on it, We fully understand the pricing today, but a computer that costed few thousand dollars 5 years back is less than a grand today. So an UMPC that is a $1000 today will be $500 soon. What’s your take on it?

Why a $500.00 Price Tag for an Ultra Mobile PC isn’t realistic [TabletPC2]




4 Responses to “Why $500.00 UMPC is not yet there?”


  1. 1 Pc_Madness Aug 15th, 2006 at 5:19 pm

    Simple solution? Get rid of Windows and bundle it with a free Operating system instead. Much cheaper. :p

  2. 2 kodekid Sep 23rd, 2006 at 11:34 am

    exacltly load it with ubuntu , you really believe that a computer manufature company is really pay that much for parts ,some mabie but im sure theres a few of thoses they pay way less for

  3. 3 BonJovi Jan 16th, 2008 at 1:22 am

    UMPC are just gadgets, not for serious work like a notebook, besides its quite damn slow

  1. 1 August Updates « UMPC Pingback on Sep 8th, 2006 at 11:53 am

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