Carl,
Take out the silicon and you still have copper, fiberglass,
caps, resistors, inductors, headers, connectors, plastic casing,
platters, heads, a tube, cables, sockets, switches etc.
Gwenapp is right, the silicon content is small. About $100 in
our cheap PC example. You can't deny that. For these things
to get much cheaper, their physical makeup would have to change..
i.e. more integration.
Re: But the parts of the computer that you admit in your
post to being more expensive are mostly those parts
that have high semiconductor content. Anybody who has
ever assembled a high-end computer from components knows
this.
Incorrect. The highest priced items are the monitor and hard
drive.. low semiconductor cost structure relative to the physical
stuff. Even a DIMM's cost is not exclusively semiconductor based. There is a PWB you know.
TV's are a bad example as they are fixed function devices. You
cant upgrade sound, add more capacity etc. You can't load new
software and change their usage model. They are truly commodities.
As for autos, not only did they used to be expensive, they still
are. The average american has to finance one for 5 years. Since
1970 at least, the price vs. average salary has increased. You
get more for your money now but it still costs the average american about 75% of their yearly net pay to afford one.
Autos are a bad example for your position. They bolster mine.
Witness the popularity of the Yugo and other sub-10000 autos.
How cheap can PC's go depending on consumers needs? A fully
functional 486 based PC can be had for about $150, much less
than you could manufacture it new for today. If you only
want to surf the net, email etc. a set top box for $100
will do. If you want the latest OS and applications,
you'll need a PC which is made up of much more than just
silicon.
MEATHEAD |
