Toshiba may be losing $500 on each cut price HD DVD player

I have to wonder at the desperation of Toshiba, if this news turns out to be true. Reportedly, they're losing around $500 on each cut-price HD DVD currently being sold in US stores' "bargain basement" sales which have been taking place over the weekend.

It may not be true, but according to sources, it cost Toshiba around $674 in parts alone to manufacture the HD-A1. The same could be true of the HD-A2, the unit being sold, and the HD-A3, which is usually more expensive but has reportedly been substituted by a Best Buy store which ran out of stock.

Note that this is all speculation based upon figures produced by iSuppli, and manufacturers have the right to sell products at a loss. However, while these aren't long-term discounts, the price of HD DVD players in general has fallen, which surely can't be sustainable for as long as the price of component parts remains high.

(Via Pocket-Lint)

Powermat: Revolutionary Gadget Charging

Comments