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Is the price of Propeller going to increase soon? — Parallax Forums

Is the price of Propeller going to increase soon?

william chanwilliam chan Posts: 1,326
edited 2007-10-25 13:11 in Propeller 1
I heard that packaging for the Propeller is done in Taiwan.
Considering the way the US dollar keeps falling against other currencies, don't you think this is inevitable?
Just thinking aloud on what may be in store in the near future to get prepared...

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Comments

  • Mike GreenMike Green Posts: 23,101
    edited 2007-10-22 17:37
    The cost of a Propeller chip is still a small part of the cost of a system and the chip packaging cost is only part of that. Most PC board fabrication and assembly is done outside the US and will go up in cost (in terms of dollars) as well. For high-volume commercial products, there are often moderate term contracts involved (involving time frames of months). This will tend to decrease the impact of currency value drops. For low volume products and services, there's not much you can do other than to have diverse suppliers and customers.
  • parts-man73parts-man73 Posts: 830
    edited 2007-10-22 18:42
    I have first hand knowledge on this subject. The supplier that I use for the SpinStudio circuit boards just increased their prices by about 10%. I don't have any immediate plans to raise my prices on existing products, but as I come out with new products, I'll have to take that into consideration.

    I remember a thread a few months back telling about a new Parallax facility somewhere in Asia, perhaps if you own the plant there, it doesn't matter what the dollar is doing, because no money is changing hands when the products are imported to the USA??

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    Brian

    uController.com - home of SpinStudio
  • Mike GreenMike Green Posts: 23,101
    edited 2007-10-22 18:57
    Brian,
    The local and regional cost of the Propeller chip and the other parts may not change significantly, but the amount of dollars needed to pay for the assembled board will go up as the value of the dollar decreases in relationship to the various regional currencies.
  • parts-man73parts-man73 Posts: 830
    edited 2007-10-22 20:39
    Mike,

    Now that I think of it that way you are correct. I was incorrectly thinking along the lines of, If you sell omelets, and you own the henhouse, then your price of supplies will never go up.

    But in this real world example, there are other factors to be considered (labor and supplies). And if the US dollar is worth less, you have to send more of them to buy the things you need to produce the goods.

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    Brian

    uController.com - home of SpinStudio
  • Mike GreenMike Green Posts: 23,101
    edited 2007-10-22 20:54
    If you sell omelets and you own the henhouse, you have to get feed for the hens somewhere. If you grow it yourself, you have to get fuel for the tractor and you need to feed and house yourself (or pay someone better nourished and more comfortable than yourself to do the hard work). That assumes that you've already paid for the henhouse and the tractor and the hens, etc. and aren't still paying off the loan.
  • deSilvadeSilva Posts: 2,967
    edited 2007-10-22 22:38
    This is OT - sorry; all prices for products containing milk rised considerably a month ago in Germany (and also other European countries). The reason beeing, that for years prices of diary products had been hold low, enforced by the supermarket chains... Now the dike has broken and the flood is coming.

    The first time I noticed this was when my Cappuccino in our Cafeteria rised for 20%, the reason stated see above.

    The price for Espresso also rised for 20%....
  • cgraceycgracey Posts: 14,133
    edited 2007-10-22 22:50
    So far, the falling dollar has not impacted our Propeller wafer or packaging costs. Even if it did, though, it would have to be pretty severe before we would raise the price of the chips. Most of the Propeller's price today is to pay back our R&D costs, and there is a good deal of flexibility in that. So, this isn't something to worry about. If you live abroad, the Propeller is just getting cheaper.


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    Chip Gracey
    Parallax, Inc.
  • deSilvadeSilva Posts: 2,967
    edited 2007-10-22 22:53
    Chip Gracey (Parallax) said...
    ... Most of the Propeller's price today is to pay back our R&D costs
    smile.gif
    said...
    If you live abroad, the Propeller is just getting cheaper.
    Alas, the distributors will have their own view on this matter :-(
  • parts-man73parts-man73 Posts: 830
    edited 2007-10-22 23:08
    deSilva said...
    This is OT - sorry; all prices for products containing milk rised considerably a month ago in Germany

    Not off topic at all. We are talking chickens and eggs here, we don't want to leave out the cows. It'll have them sad if left out, and we want happy cows!

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    Brian

    uController.com - home of SpinStudio
    106 x 133 - 3K
  • Graham StablerGraham Stabler Posts: 2,507
    edited 2007-10-22 23:20
    call that a smile, check out my dog:

    Off topic enough yet [noparse]:)[/noparse]
    1632 x 1224 - 433K
  • Ken PetersonKen Peterson Posts: 806
    edited 2007-10-23 02:36
    Now...there's a cute doggy! OK...off topic. what were we talking about again? smile.gif

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    The more I know, the more I know I don't know.· Is this what they call Wisdom?
  • Fred HawkinsFred Hawkins Posts: 997
    edited 2007-10-23 04:44
    we were working towards why milk costs more than gas
  • cocokiwicocokiwi Posts: 75
    edited 2007-10-23 07:01
    Fred Hawkins said...
    we were working towards why milk costs more than gas
    ······· NOW if we could only catch the methane from cows butt,s we would make a bundle lol.gif


    ····· Dennis

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    http://people.delphiforums.com/cocokiwi/Image/picture.jpg
  • AleAle Posts: 2,363
    edited 2007-10-23 07:39
    It is better not to touch methane at all. As everything in this planet, it is in a critical equilibrium.

    deSilva: Milk went up almost 50% since year begin, and the week before last, milk products got almost 20%, yogurt, for instance. Butter got 0,50€ increase at the end of Sept alone! :-(. Not that I eat too much butter, but milk and yogurt are still a great deal of my diet, I mean I need to grow!
    Public transport otoh got upped some 12% or so in the last 4 years.

    The propeller may be cheaper if we order it via digikey (was 10€ something last time I checked, now it is 10,07€ a bit cheaper), but locally by sander, it is stil at 17,70€ apiece !
  • Andreas JakobAndreas Jakob Posts: 23
    edited 2007-10-23 16:42
    No need for Cows, just use saltwater smile.gif

    youtube.com/watch?v=4kKtKSEQBeI
    cocokiwi said...
    Fred Hawkins said...

    we were working towards why milk costs more than gas
    NOW if we could only catch the methane from cows butt,s we would make a bundle lol.gif
    Dennis
  • Stan671Stan671 Posts: 103
    edited 2007-10-23 18:09
    The thing with that salt water burning is that it burns because it is placed into some kind of machine that is bombarding it with radio waves (or something like that). How much energy does it take to run that machine compared to how much energy comes out in the flame?

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    Stan Dobrowski
  • DufferDuffer Posts: 374
    edited 2007-10-23 18:30
    Fred,

    Never mind milk. Why does botteled WATER cost more per gallon than gasoline (in the US)??
  • Paul BakerPaul Baker Posts: 6,351
    edited 2007-10-23 18:52
    Because we are Americans and we are actually dumb enough to pay more for water than gas, mostly based off a faulty notion that bottled water is somehow better for us than tap. Sad thing is all the major brands are simply filtered tap water (I think Dasani is from the taps of Sychenectady NY, or some such).

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    Paul Baker
    Propeller Applications Engineer

    Parallax, Inc.

    Post Edited (Paul Baker (Parallax)) : 10/23/2007 7:00:25 PM GMT
  • deSilvadeSilva Posts: 2,967
    edited 2007-10-23 18:59
    @Duffy:.. and why does an apple from the neighbour village cost more than a Kiwi fruit from Australia (or may be New Zealand,or just South Africa)??
  • Paul BakerPaul Baker Posts: 6,351
    edited 2007-10-23 19:00
    Because your neighbor lives in a desired apple-ation *hahaha*

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    Paul Baker
    Propeller Applications Engineer

    Parallax, Inc.
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2007-10-24 16:20
    I'm a bit late to post, but the newspaper here is quoting the head of the World Bank as saying the U.S. Dollar might take a sudden and dramatic fall.

    I'm not sure if the Taiwan dollar will follow the US dollar down or finally jump ship. Usually, the Taiwan dollar follows the USD because the foreign reserve are heavily in USD. They would have to get rid of a heck of a lot of T-Bills as it is one of the larger reserves in the world.

    The cause of this potential drastic severe drop and and equally drastic and severe jump in gold prices would simply be Mainland China finally letting the market decide the value of its currency, the Yuan, rather than having it tied to the USD.

    Sooner or later this will occur and China might see that now, before the 2008 Olympics, as an excellent time to elect the change as tourist will have already booked their trips and just have to accept the rate change.

    I am just wonder if the big steel mills, like Posco, and metals providers, like Rio Tinto to China are getting paid in USD or Yuan. If they have long-term delivery contracts in Yuan, their stocks may have a big windfall profit to report.

    At the end of the day, I don't think it will affect Parallax as much as an economic slow down might. And, it might help to have more affluent buyers abroad. Europe will gain business that the US may not longer provide.

    IN sum, we who have next to nothing also have nothing to worry about.

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    PLEASE CONSIDER the following:

    Do you want a quickly operational black box solution or the knowledge included therein?······
    ···················· Tropically,····· G. Herzog [noparse][[/noparse]·黃鶴 ]·in Taiwan
  • deSilvadeSilva Posts: 2,967
    edited 2007-10-24 16:27
    Kramer said...
    In sum, we who have next to nothing also have nothing to worry about.
    That's it!
    Although Karl Marx had a somewhat stronger version of this, I also like...
  • rjo_rjo_ Posts: 1,825
    edited 2007-10-24 17:11
    WELL...

    For my money, when a Propeller costs less than a pack of cigarettes in New York... then something is seriously wrong. And we are very close to seeing that happen.

    deSilva,

    Our milk also went up... but ham and turkey is now $1/lb... that's not a typo. ONE USD per pound...for ham and turkey... no joke... at Walmart. Probably comes from China and will be recalled shortly after it is consumed[noparse]:)[/noparse]

    Apples cost more because Australian kiwi herders are cheaper than German apple shepards (Germany has national health insurance.)

    (What I don't understand is how an acre of farmland in Kabul is worth more than 20 acres in Illinois... local taxes? ...maybe it is the crop rotations?)

    You have been studying the wrong Marx... Karl was all screwed up. Groucho, on the other hand understood money.

    "Money frees you from doing things that you dislike."

    Groucho Marx

    (Which isn't true when your Government has all of the money.)
  • deSilvadeSilva Posts: 2,967
    edited 2007-10-24 17:19
    Karl Marx was not good with money anyway - the person who new all about it was Friedrich Engels - but that's just a-propos...

    And I just learned the many connotations of "kiwi" smile.gif This forum indeed is a fountain of wisdom
    My dictionary says what I was referring to is sometimes called "chinese gooseberry"
  • GadgetmanGadgetman Posts: 2,436
    edited 2007-10-24 17:21
    About the dollar...

    It is now so low compared to the NOK that it's almost painful NOT to take advantage and buy a ton of stuff from the USA, and Parallax in particular(unfortunately, I have no spare cash now...)
    In fact, while I was out driving yesterday, there was a program on the radio(on NRK, the state run broadcaster) about how to shop on the net, and from USA in particular, with tips of what to save the most from, pitfalls and T(r)OLL and VAT rules.

    As for the price of milk, here the farmer gets 3.50NOK/Litre, we pay about 11NOK/L, Diesel is 10.80/L, and Gasoline(95 Octane) 11.80/L
    OJ I can get for about 7.50NOK...

    Bottled water?

    Isn't 'Evian' a popular brand?
    Hold it up to a mirror...
    smile.gifk

    Edit: Todays exchange rate is 5.45NOK - US$1

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    Don't visit my new website...

    Post Edited (Gadgetman) : 10/24/2007 5:26:01 PM GMT
  • LoopyBytelooseLoopyByteloose Posts: 12,537
    edited 2007-10-25 09:14
    Karl Marx never finished writing 'Das Kapital', Engels took over the work, and the 'Communist Manefesto' is truly an extended rant.

    But current economic development owes much more to a non-communist author, W.W. Rostow's The Stages of Economic Growth - A non-communist manifeso.

    Parallax has done a wonderful job of combining the chip with the board and produced Protoboards for the SX-28 and the Propeller that are cheaper that other form factors. In other words, Parallax is very aware of their customer's pocket books.

    ▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔▔
    PLEASE CONSIDER the following:

    Do you want a quickly operational black box solution or the knowledge included therein?······
    ···················· Tropically,····· G. Herzog [noparse][[/noparse]·黃鶴 ]·in Taiwan
  • rjo_rjo_ Posts: 1,825
    edited 2007-10-25 11:45
    Economic determinism is economic determinism. What is missing is the concept that currency and capital must be dynamically linked at little or no cost to capital.
    Until this condition is met, all you have is central planning in some socially accepted garb, which attempts to rationalize markets through increasing centralization and social normalization.

    Attempting to control capital by controlling the flow of currency is absurd.

    In all such systems, unless one restrains growth, markets collapse due to the net flow of currency equivalents into new markets. What then happens depends upon the actual value of the collapsing markets. Too much growth and essential markets collapse. Too little growth and you have a failing society. All such systems are terminally unstable. When the need to expand exceeds the capacity to do so, various emergencies ensue, which continue until either new growth stops or the society is living under marshal law.... at which point, the system is re-rationalized, through various social sharing mechanisms and then everything starts all over again.

    How many times can Europe afford to re-invent itself?

    How long can we do the Texas two step?
  • AleAle Posts: 2,363
    edited 2007-10-25 12:13
    Gadgetman: When I was there, Gasoline was something like 8 to 9 NOK, but I really do not remember the rate between CHF and NOK, well I got my NOK with euro, but paid in CHF, I'm sure I lost quite a bit on that smile.gif. The thing is that most prices were rounded to 1 NOK...
  • hinvhinv Posts: 1,253
    edited 2007-10-25 13:11
    If you want to know what is happening to the economy, listen to:
    http://www.gcnlive.com/realplayerfreeNtwk4.ram
    http://www.gcnlive.com/winampfreeNtwk4.m3u
    http://www.gcnlive.com/windowsmediafreeNtwk4.asx
    At 10am CST.

    Get Ready....
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