It really is the economy of scale in action.
Once you've got the R&D out of the way - which is minimised by sticking to
the reference design - you've probably got $10 worth of components in there,
plus $5 for the connectors and case, and another $2 for the PSU. Figure $1
for the CD and manual, $1 for someone to put the lot together - low wages
play a BIG part in this - and $1 per unit bulk shipping from Taiwan to the
UK, and you've got a $20 box
And there really is no catch. You get a pretty decent box for your money. It
might break a few esoteric protocols and have an ugly box, but it will do
the job of sharing an internet connection. But nobody buys them because
people - even IT people who should know better - buy brands. They are
seduced by the logo.
Now what's really interesting to consider is that Linksys, Netgear and Dlink
aren't spending any more on manufacturing. Less, if anything. The difference
is the amount of money they spend on branding, marketing and advertising -
which allows them to sell many more boxes at twice the price of the
unbranded stuff.
We should get Naomi Klein onto this one I reckon.
Benedict.
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"Tim Lyons" <(E-Mail Removed)> wrote in message
news:timl-(E-Mail Removed)...
> Dabs, ebuyer and Solwise are all offering 4 port ADSL modem routers at
just
> under GBP 40 incl VAT.
>
> How on earth can they offer them so cheap? I know they are made overseas
> (Taiwan?) but even so. I know they don't have a 'proper' firewall (but
even
> that is provided to some extent by the latest firmware).
>
> In contrast, I also want to get a couple of faceplates with filters, and
> possibly another filter, and that will easily cost as much. The
> modem/router has at least 6 sockets, a power supply, and the photo of the
> innards of one of the devices looked as though there were quite a number
of
> components all to be inserted, connected etc. (all done automatically
> presumably). Other suppliers are offering similar kit (or kit with less
> functionality) at much, much more. The review at one of the sites
> mentioning one of the modems being the cheapest yet and as breaking the
GBP
> 100 barrier, but these are less than half. As someone said to me - I
> wouldn't screw the box on at that price.
>
> How do they do it? What is the catch?
>
>
>
>
> (Actually Solwise are out of stock at the moment, so they probably only
> partly count).
>
> Tim Lyons