[net.periphs] Modem costs

wmartin@brl-tgr.ARPA (Will Martin ) (12/09/85)

It has occurred to me that it would seem that an ordinary 300/1200 bps
modem, without special programming or fancy features, should have about
the same parts count and component cost of a basic multi-number-memory
telephone. I would think that it should be available for a retail cost
somewhere in the $50 range. This does not seem to be the case. Am I wrong
in the parts cost estimate? Or is it just that telephones are produced
in so much greater volume that the economies of scale cut their prices
down to a third of what they would be if produced in modem quantities?
Or are the manufacturers just conspiring to keep the prices high?

Will Martin

UUCP/USENET: seismo!brl-bmd!wmartin   or   ARPA/MILNET: wmartin@almsa-1.ARPA

grr@unirot.UUCP (George Robbins) (12/12/85)

In article <442@brl-tgr.ARPA> wmartin@brl-tgr.ARPA (Will Martin ) writes:
>It has occurred to me that it would seem that an ordinary 300/1200 bps
>modem, without special programming or fancy features, should have about
>the same parts count and component cost of a basic multi-number-memory
>telephone. I would think that it should be available for a retail cost
>somewhere in the $50 range.
>Will Martin

Prices are falling quickly as these products are moving from the commercial->
hobby->consumer markets.  There are different rules and competitive forces in
each of these these markets.

Modem prices have been declining rapidly.  The sales price for Hayes compatible
modems will probably be down to around $100 within a year.  Given the order of
magnitude (more?) difference in volumes, between specialty items like modems and
broad appeal items like telephones, this is probably as much as you can ask for.
-- 
George Robbins			uucp:	{unirot|tapa}!grr
P.O. Box 177
Lincoln U, PA  19352	[Any ideas herein are not responsible for themselves!]