BOM cost for the V8P?

Discussion in 'Dell' started by heatlesssun, Dec 11, 2013.

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  1. heatlesssun

    heatlesssun Scribbler - Standard Member Senior Member

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    Been wondering for a while, what do you think the material cost is in the Venue 8 Pro, from CPU to Windows licensing? Is Dell making any money when these thing go on sale for $200 or is there Microsoft or possibly Intel subsidy going on? Just curious.
     
  2. V3D

    V3D Scribbler - Standard Member

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    Look at the Venue 8 Android version, with similar hardware. $179.99 to buy from Dell & while the Venue 8 has a slower CPU than the Pro it does have a higher MP front camera & also has a GPS. So I would think it really comes down to what the cost is to Dell for each copy of the Windows 8 / Office combo.
     
    Last edited: Dec 11, 2013
  3. leaftye

    leaftye Old timer Super Moderator

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    They are definitely making money, even if indirectly.

    If I had to guess, it costs them around $200. I'd like to see an ifixit teardown, but they might not provide a BOM estimate. They may be break even on the $200 sales, but definitely losing money on the $100 version. Microsoft might have subsidized their sales as a way to get people in their store while also hoping people use their app store. They get some revenue when Bing is used too. They desperately want people to use Bing, so much so that you can get paid to use it. They make money off of accessories too, and those probably have a bigger profit margin than the tablets.

    For comparison, the iPad mini was $188.
     
    Last edited by a moderator: May 18, 2015
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  4. dwx

    dwx Scribbler - Standard Member

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    It seems like everyone is making the same Bay Trail 8" tablet. I read something today about Nokia looking to release one as well. So it's just an Intel reference design with minor tweaks here and there so the development costs for the manufacturers isn't very high.

    I don't doubt they are making money off the tablet even with Windows and Office thrown in. The real money maker is the Folio case for $40, the active pen for $30, and the new Bluetooth keyboard/case for $100. Those are items which cost nowhere near what they are charging to produce...
     
    Last edited: Dec 11, 2013
  5. Mesosphere

    Mesosphere Geek. Senior Member

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    Similar to Surface with the $12 keyboards they sell for 100+ =) although on surface they likely have a larger margin on the slate, but much more advertising money spent and perhaps more R&D.

    Office I think is no additional cost to dell. MS said sometime back it would come free on all sub 10 inch tablets.
     
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