08-07-2016, 08:00 AM
The problem with electronic devices including chip design and software development are the high initial cost. They are sold at a steep price to reach the break even point quite fast. Compared to similar products in consumer electronics are the quantities quite low. That makes it even more hard to reach the break even point within a reasonable time.
A very good example are the "very" old Lenz DCC decoders Bachmann uses in their DCC locomotives. Those old devices are sold to Bachmann by the manufacturing price plus a small premium. The development cost have been recovered many years ago.
A similar trend can be observed with the tailored Tsunami sound decoders sold to Bachmann and some others. They are quite old (Tsunami 2 hit the street some weeks ago) and can be sold closer to manufacturing cost.
A very good example are the "very" old Lenz DCC decoders Bachmann uses in their DCC locomotives. Those old devices are sold to Bachmann by the manufacturing price plus a small premium. The development cost have been recovered many years ago.
A similar trend can be observed with the tailored Tsunami sound decoders sold to Bachmann and some others. They are quite old (Tsunami 2 hit the street some weeks ago) and can be sold closer to manufacturing cost.
Reinhard