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As we all probably know, the new HD2 chip from TI will not only increase contrast ratio, it is also supposed to cost 50% less than the current HD1 chip.


Does anybody know how much the current chips cost? If for example an HD1 chip costs $250 and the HD2 chip will now cost $125, then that could result in a significant price drop per projector.


However, if they are going from $5 to $2.50, I would think that the projectors might not even go down in price.
 

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There has been some speculation here in the past on the actual volume price of the HD1. Don't know if the question was ever resolved. Based on what we've seen in terms of price discrepancy b/t the US and Japanese markets for the same PJs though, it seems that price here is based on what the market will pay as much as component cost. Of course, US dealer and support networks add cost too.

TM
 

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It does seem that the cost of the chip is minimal compared to the the machine. If the cost of an HD1 chip is $250, then the percent of a $10,000 projector is 100*250/10,000 = 2.5%, thus the reduction of the HD2 to $125 would result in a lower percentage of a similar costing projector to be 1.25%.


It seems to me that the cost of the chip is minimal. Hardware is cheap. It's the development and software costs that make these projectors expensive. That is why the first projectors cost so much. It's the R&D behind the technology.


That's my take on this. I don't know why people think the HD2 chip will make projectors half as cheap. If someone could clarify this, I'd appreciate the knowledge.


Dave
 

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Thank You Dave.. I dont think that these chips are gonna make them cheaper either.. Were talkin supposedly better technology and they are gonna charge less than whats out there already?? It might be cheaper for the companies to buy and make but I dont think the consumers are gonna ever see it.. Just my personal opinion..


Chris
 

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I think there is more potential for lower pricing than you guys realize. Right now the Marantz and Sharp US pricing is based on what the other competition charges. Seleco $15,000, Runco $18,000 and DWIN (announced at CES) $13,000.


If you look at what the Marantz machines are selling for in Japan you get a better idea of the true cost/price reduction potential, but we will only see it if some of the high volume manufacturers like Plus jump in with competitive projectors.


All figures in US$:


Retail list $7,500; actual dealer selling price $5,500, dealer cost assuming 60% of retail $4,500


Total Mfg cost est $2,250 = Parts $1,125, labor & OH $1,125


so if the TI DMD device is $250 its over 10% of the total cost and 20% of the materials cost. But we still don't know what the real volume price from TI is.


My cost estimates are based on what a healthy, profitable manufacturer would need to succeed. In todays state of the economy the actual Marantz cost could be higher if they are not making healthy profits. I don't think that the recent sale of Marantz to Denon's holding company is a ringing endorsement of their profitability.
 

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I think that the projector market will follow the lines of the pc market. In 1997 I paid about $3000 for a Dell 233mhz 3.2gig pc, now because of plunging chip costs etc you can pick up a 1000mhz 20gig pc for about $7-800 !! Or at least thats what I hope the market will do, then I will be able to buy a wonderful projector for about $3K in a couple of years!!:D
 

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Been here before...


The projector manufacturer doesn't simply get a chip from TI they also get a electronic "formatter board" to go a long with it. I would guess that the total price would be no cheaper than $500 for the HD2's. I would guess that the HD1's assemblies were shy of a $1000 price tag.


-Mr. Wigggles
 

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$1,000 for a TI HD1 assembly would be almost a fourth of the wholesale selling price for the Marantz and an even higher % for the Sharp. Where does the $1,000 est come from?


If true both Sharp and Marantz must be losing money on every unit they sell. At a 20 projector/day production rate, as stated by Dan Miller, the Marantz assembly cost must be very high, and there are lots of other parts in addition to the DMD assembly. Not a lot of automation on a 20/day assembly line.
 

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Carl Brinkman,


I don't think the Japanese projector price is a very good indicator of possible price drops in US/EU retail prices.


Take any Japanese projector price (which is sold almost at retailer net value, due to cut-throat pricing) and throw in the expense for export control (paperwork at Japan), freight (to EU or US), import taxes (both EU and US being highly protective, probably imposing punitive taxes on Asian electronics), possible sales taxes (or VAT in EU), importer/distributor mark up and then retailer mark up.


Of course if you order the projector from Japan yourself, you may not have to pay the import tax (if you're in US - customers in EU can't escape it) and of course you avoid the retailer mark up.


But I don't think there are any phenomenal savings coming up due to HD2 chip - neither for order-straight-from-Japan route or for the normal retailer route.


On the contrary, as new technology tends to cost a little more (if it offers additional features) - at least for a while, I'm guessing the very first HD2 projectors will be even more expensive, until a lot of manufacturers enter the market at which point the prices will stabilize.


That'll take some time, because markets need to wake up to DLP in general and there needs to be a ramp up of production volume by several manufacturers. I'm guessing summer 2004 earliest myself as the time frame for significantly cheaper HD2 based 16:9 DLP projectors that are built/calibrated for HT markets.


That's just my 2 cents worth.


cheers,

Halcy
 

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I agree we won't see a price drop. The chips and supporting circuitry that TI sells as a board really are just one line-item in a huge spreadsheet that makes up the final cost. I'm counting on projectors using HD-2 costing more...


~Dominic
 

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well figure this out.... according to InFocus .........it is a 2X system..the projector costs around half as much to make as the average street price. The 2X system is also what computers run.
 

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TI as a business charges as much as it can. The optics, lens and calibration of an LCD equivalent is much higher than the numbers I quoted.


-Mr. Wigggles
 
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