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When you explore making vs. buying wireless,
unit cost is typically the deciding factor. Recent market hype
has rumored that radios can be built from chipsets for about $5
each, much cheaper than buying $50 radios.
As engineers quickly learn, however, $5 is actually the 100K-
to 1M-piece price. The 10K-piece price is closer to $10, and the
surrounding parts and PCB add another $10 to $15. On top of that,
manufacturing, test and yield add at least $5.
This total cost of $30 per unit does not include expenses to develop
testers, write software, pass regulatory, etc. What's worse, market
changes bring new frequencies, new modulation techniques and new
chip sets, forcing you to redesign just to keep up with your competition.
A completed wireless solution clearly offsets the do-it-yourself
savings of $200K to $250K per year for 10K radios. If you are
consuming fewer modules, the decision becomes that much easier.
Read more:
To buy or not to buy: Why ready-made
RF systems make sense.
Wireless myth #2: "You
should design your radio using chipsets."
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