Hardware BOM Costs

Commenters debate the true cost of hardware products, emphasizing that bill of materials (BOM) and raw components represent only a small fraction of total expenses including development, engineering, supply chain, low-volume production, and manufacturing. They justify high prices, simplified designs, or missing features like knobs by highlighting these hidden costs over retail part prices.

πŸ“‰ Falling 0.4x Hardware
3,742
Comments
20
Years Active
5
Top Authors
#4582
Topic ID

Activity Over Time

2007
1
2008
9
2009
39
2010
55
2011
84
2012
133
2013
117
2014
115
2015
136
2016
179
2017
183
2018
176
2019
234
2020
300
2021
383
2022
438
2023
451
2024
370
2025
325
2026
14

Keywords

RAM VS LogicBoard COGS USB statista.com GND BOM DisplayPort ECU cost components bulb costs expensive hardware cents design assemble pcb

Sample Comments

janekm β€’ Feb 24, 2021 β€’ View on HN

You're not paying for the raw components... given the incredibly niche audience for this product and the development effort involved it's really cheap (and it looks like they are even hand soldered).

stagger87 β€’ Jan 19, 2024 β€’ View on HN

You don't know how much they are paying for components. (Hint: It's not retail)

arrayjumper β€’ Dec 30, 2017 β€’ View on HN

Probably to keep hardware costs low.

emrah β€’ May 16, 2023 β€’ View on HN

I don't know for this particular case but usually expensive stuff has expensive components too, especially in low quantity

dbcurtis β€’ Jan 27, 2019 β€’ View on HN

Agree completely that it is a deal breaker. But don’t be too hard on the hardware engineers, sometimes the BOM can not afford the extra 17 cents.

esafak β€’ Jul 9, 2023 β€’ View on HN

Hardware is cheap. The engineers are more expensive.

jwr β€’ Jun 17, 2019 β€’ View on HN

> Are knobs and plastic moldings that expensive though?If you consider the entire cost, yes. Every BOM item has a huge cost associated with it, and it's price only a small fraction.Consider that for every item you need to:* secure supply for the next 10 years or so* organize purchasing and put it into the supply chain* design assembly instructions, teach workers how to assemble it* design and implement testing procedures* design and implement diagnostics to figure ou

ww520 β€’ Jul 16, 2021 β€’ View on HN

Not sure. Patent? Hardware cost? Complexity?

wahnfrieden β€’ Aug 4, 2013 β€’ View on HN

Cheaper components, maybe? (If it lets them get by with less memory for example.)

shimon_e β€’ May 19, 2012 β€’ View on HN

Apple probably doesn't care about the 1c saving by cutting component to bare requirements to be safe. Also you need to include the engineer's time.