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Posts Tagged ‘cost’

Here's a tidbit in today's Microsoft quarterly earnings that we previously overlooked: a $240 million cost of revenue "primarily... resulting from the discontinuation of the Kin phone, offset in part by decreased Xbox 360 console costs." In other words, the company took at least a quarter billion hit due to manufacturing, distribution, and support costs of the Kin (according to Microsoft's definition of "cost of revenue"). We don't know how much Xbox 360 offset, unfortunately, but we can add this figure to the $500 million Danger acquisition and the full marketing cost for the product (which we also don't know, but anecdotally, it was on par with other major campaigns) to reach... well, at least $800 million in regret for the folks in Redmond.

Kin listed as at least $240 million writeoff in Microsoft earnings report originally appeared on Engadget on Thu, 22 Jul 2010 20:50:00 EDT. Please see our terms for use of feeds.

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As if waiting around until fall to get iOS 4 weren't enough of a downer for iPad owners, the latest rumor we're hearing is that they'll have to pay a fee in order to do so. That's right, for the privilege of waiting patiently to get some semblance of multitasking on your slate device, you'll have to pony up the cash -- or so the story goes. Stuff has it on strong authority from app developers in the know that Apple will be asking for a (relatively small) tithe from those wishing to update their iPads when the leaves start turning amber. We'd advise keeping the pitchforks stowed for now -- at least until there's some solid corroboration for this -- but then it's not like Apple hasn't done this before.

Update: Apple's iPad licensing docs have been known to carry a provision that the "next major iPad OS software release" will be free, although iOS 4 and the word "free" do not happen to coincide in the same sentence -- overall though, that renders this rumor rather less likely to materialize.

Apple to charge upgrade fee for iPads moving to iOS 4? (update: unlikely) originally appeared on Engadget on Tue, 20 Jul 2010 06:47:00 EDT. Please see our terms for use of feeds.

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Choices, choices. Do you get the 16GB or 32GB iPhone 4? The black one now or the white one a little later? We can't tell you which variant of Apple's next phone will hold its value ideal over the coming months, but we have the ability to try to clear up a bit of the fogginess surrounding price plans on offer from UK networks. Orange and O2 are the first to drop handset pricing and full contract details, but they have not made it simple for the discerning buyer, with each carrier offering more than a dozen options. Vodafone, T-Mobile, Three, and even Tesco Mobile are set to follow suit in the coming days and weeks, but we thought we had get the ball rolling with the pair we've now.

P.S. -- And just as we publish this, Voda has gone official with its tariffs. We've now broken them down into a more digestible format as well. Just for you.

Continue reading How-to: figure out the ideal value iPhone 4 contracts in the UK

How-to: figure out the best value iPhone 4 contracts in the UK originally appeared on Engadget on Fri, 18 Jun 2010 06:49:00 EDT. Please see our terms for use of feeds.

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Chinese government to make Foxconn suicide findings public originally appeared on Engadget on Tue, 15 Jun 2010 02:42:00 EDT. Please see our terms for use of feeds.

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At yesterday's annual shareholder meeting, Foxconn revealed that it'll no longer be compensating families of dead employees as a move to discourage further suicides. CEO Terry Gou reasoned by exhibiting evidence that showed the money -- an amount almost equivalent to ten years' worth of salary -- was a major motivation for the suicides. One such exhibit was a man's suicide letter that contained the following message for his parents:

"...now I'm going to jump off Foxconn, really leaving now, but you don't have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now."

Gou also blamed a possible "Werther Effect" created by the news coverage, which might have led to six of the twelve suicides all taking place in May. Consequently, the company will be handing over its welfare management work to the local Chinese government, as it's unable to deal with too many social responsibilities.

In the same meeting, the company made an unsurprising announcement that it's looking to relocate some manufacturing work, amid a worsened earnings forecast due to increased wages -- basic salary has gone up from �900 ($132) to �1,200 ($176), rising to as much as �2,000 ($293) for those who meet new performance criteria. This will involve setting up a fully automated facility in either Taiwan or Vietnam, while the existing Vietnamese plant will be receiving more orders. Chairman Samuel Chen also said that Foxconn will be working with its clients to share the load -- no further details on this, but we suspect Apple's rumored direct subsidies are part of the plan.

Foxconn axes suicide compensation, relocating some production to Vietnam or Taiwan originally appeared on Engadget on Wed, 09 Jun 2010 04:28:00 EDT. Please see our terms for use of feeds.

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You might recall that Foxconn, faced with the searing spotlight of the world's attention on its working conditions, recently announced not one but two wage increases for its employees, which is now looking like part of a larger trend in China toward higher pay. The city of Beijing has said it'll be raising its minimum wage by 20 percent, to 960 Yuan ($140) a month, and is expected to be followed by others. The New York Times pins this on numerous factors, including growing competition for workers, state authorities insisting on higher standards, and a national policy effort to ease the gap between rich and poor. All good news, you might think, but these worker-friendly measures are taking their toll on manufacturing costs, and now there's talk of companies relocating production to cheaper locales.

Vietnam, India and Indonesia are the prime suspects for taking production duties away from China, with some companies also apparently contemplating shifting to poorer regions within the nation. These changes are unlikely to perturb high-end electronics manufacturing in the short term, due to its more sophisticated infrastructure and supply chain, but the end consumer might still feel their effect in the form of higher prices. Inflation within China and a projected increase in its currency value are likely to drive up the cost of exports, so we'd advise buying what you need sooner rather than later.

[Thanks, Daniel]

Rising labor costs in China may lead to pricier electronics, manufacturing relocation originally appeared on Engadget on Tue, 08 Jun 2010 05:31:00 EDT. Please see our terms for use of feeds.

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With international pre-orders now being taken, more data plan details have started emerging for Apple's iPad. We now know that Rogers will be charging Canadians pretty similarly to how AT&T treats American 3G users, albeit with the inclusion of a 5GB monthly data cap on the pricier tariff. O2 has also outed its plans, though it's not much better news in the UK where it's matching Orange's pricing with a 3GB monthly allowance for �15 per month ($22), while Vodafone has completely lost its marbles with a 250MB offers a 1GB option costing �10 a month and 5GB costing �25 per month. Apple engages in a bit of false advertising in Germany, claiming unlimited data plans with O2 (€25) and Vodafone (€29.95), but there are clear limits set out on the carriers' sites of 5GB and 3GB per month, respectively.

Finally, Japan gets the stiffest deal of all with iPads there officially confirmed to be SIM-locked to Softbank Mobile's network, something that has already earned plenty of ire from the local populace. The carrier does offer a variety of monthly payment plans for obtaining your tablet, though its data tariffs are nothing special: �2,910 ($32) for a month's unlimited use if you sign up to what seems like a longer-term plan, or �4,410 ($48) for a 1GB allowance if you go pre-paid. There's a third option for spendthrifts, costing �1,510 ($16) for 100MB pre-paid, but that's not even enough for you to watch a full Engadget Show, so we'd probably advise against it. You can find price breakdowns for each country after the break.

[Thanks, Bram]

Update: Rogers has killed that lovely third option shown in the image above. Hope you weren't excited about it.

Update 2: Turns out Apple had the wrong details about Vodafone UK too -- you get 1GB of data if you spend �10 a month. [Thanks, Rob]

Update 3: Movistar, Telefonica's consumer arm in Spain, has announced a pretty stonking deal: if you already have a smartphone data plan costing €25 a month, you can get a Micro SIM and 3G data on your iPad for free. Espana totally just won the "best place to own an iPad" contest.

Continue reading iPad international data plans roundup: Japan gets SIM-locked devices, Spain gets a great deal more (updated)

iPad international data plans roundup: Japan gets SIM-locked devices, Spain gets a great deal more (updated) originally appeared on Engadget on Mon, 10 May 2010 07:07:00 EST. Please see our terms for use of feeds.

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It's a milestone folks: the PS3 hardware is finally ready to generate a profit. The loss-leading console once estimated to cost Sony more than $800 per (losing between $241 and $307 per console sold back in 2006) has likely turned a corner thanks to a reduction in manufacturing costs. While Sony isn't saying anything on the matter, PocketNews confirms that the latest PS3 SKU -- CECH-2100A spotted in the FCC back in February -- uses an improved RSX graphics chip based on smaller 40-nm processes similar to the PS3 Slim's new 45-nm Cell processor. The result is a 15 percent decrease in console power consumption when compared to the 120GB CECH-2000A PS3 Slim sporting a 65-nm RSX. The cooler running chip allows for a stealthier heat sink and power supply in addition to a smaller cooling unit. Those changes combined with fewer adjoining chips around the shrunken RSX should make the console cheaper to build which is good news to Sony's sagging bottom line.

Update: PocketNews has confirmed with Sony that the RSX graphics chip is built using 40-nm processes (not 45-nm). Post updated to reflect the change.

Sony PS3 upgraded with cooler 40-nm RSX graphics chip, profits await (updated) originally appeared on Engadget on Mon, 26 Apr 2010 06:27:00 EST. Please see our terms for use of feeds.

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I called and asked but they kinda skirted me around. $9.99 and optional on the Shadow, $25 and required on the G1, and Blackberry.

With the Australian mobile phone company 3, is there an added cost for using the FM radio on your phone?