deanwaterman
macrumors regular
Misplaced Mage said:I can't say I blame Apple for trying to reduce the cost of the clickwheel and increase profits (I own Apple stock, BTW 🙂 ). Do the math for the iPod nano alone using the forecast numbers and estimated teardown costs:
Apple/Cypress clickwheel: 8,000,000 x $0.45 = $3,600,000
Synaptics clickwheel: 8,000,000 x $1.00 = $8,000,000
Difference = $4,400,000
At these production scales, shaving even a tenth of a cent off the price of a part adds up to serious money over the life of a product. Of course you can wind up throwing all that money away in warranty costs if you compromise the quality in the process and end up with a lot of returns, but that's what your quality assurance people are paid to be checking.
i would rather see Synaptics keep the deal, rather than settle for a company that made a promise and couldn't deliver on quantity or quality.
There comes a time for corporate responsibility where Apple and other companies need to quit screwing the little guy so they can make more $$$.