The state of HD or near-HD projectors available at a reasonable price continues to be a disappointment. The price for the new InFocus and Toshiba unit (using the HD2 chips at 1280x720) appears to be about 70% mark-up. I wonder who is actually manuf. the unit – Toshiba? Or are they contracted to a factory on the mainland in China for about 10% of their list? The retail price for the new units will be $10,000 – OK, $9995. Hey – it’s charge what you can get away. It’s like the TV ad – stand in front of the mirror and if you read “sucker” across your forehead, then lay out the cash. This type of market only works for two situations: 1) no competition for a clearly superior technology and performance, and 2) control the market price by collusion. I do not think it is the former or we would not have rainbows and headaches and 2KHr lamps. Besides, I do not see any of them putting 1920x1080p on the screen at 120” diag., @20’, 1000 L and 2000:1 contrast for $10K. The cinema guys back off the theater units for $50K, but what fun is that.

Based on the list price, I calculate the cost for the new HD2 units as follows:
Minimum --> Maximum
TI parts to manuf. $800 $1000
Additional materials $100 $ 200
Assembly cost $200 $ 300
Manuf BOM $1100 $1500
Cost to Distribution $2200 $3000

Cost to Dealer $4400 $6000
(assume 10% for Rep orgs.)
Cost to Consumer $8800 $10000
(assume 10% off to beat the competition)

This is the normal consumer products mark-up margins, with some in the chain making a lot of money and doing little for it. And don't give me the stock and store-front argument, the web guys have very low cost to blow stuff out at retail. The Outlaws should be $3995 to their customer, or at most $4495 out of the chute. They apparently must buy as a distributor. The way I read them is that (1) they are already making lots of money on the electronics (because IT’S GOOD STUFF) – and they don’t need any more money, (2) who needs the support headaches, (3) TI and the big guys are fixing the price with no market dynamics, and they will not let them (Outlaws) in the biz at their cost for a unit, approx = $2200 à $2500, or (4) they are waiting for LCDs to get good enough for some competition at $2000 --> $3000 retail. It may not happen, but we will see what happens when the new Sony and Panasonic projectors get out there over the next few weeks. JVC has a new projector (SX1) at $10K that sound on paper as good as the DLPs – we will wait for some test data when they deliver next month. Yes, it is a sad state of affair for those of us without a spare $10K lying around. The kids still have to eat, and the bank wants the mortgage – it’s depressing.



[This message has been edited by JDB001 (edited October 23, 2002).]