Originally Posted by Stealth Pyros
Mmmmm I think it's a safe bet that the profit margin per processor is nowhere near the profit margin per Comcast subscriber; two totally different things being purchased, a product and a service. A 12 month subscription to Comcast costs about 3 times as much as a 2500k that will last you 3 or so years. Bigger picture now?
I'm not disagreeing with you about Comcast being the best we got (for the most part). I pay $65/month for 50mbps service including TV, and have been getting around 83mbps. It's just... if Google can give us 800mbps+ for $70/month, Comcast/etc. seriously need to step up their game.
To start, Google develops and provides android FOR FREE to any person wishing to impliment it to any platform. That being said, Google makes an enormous amount of revenue between the app store and the various other data mining techniques they use every time you use their product. The same goes for Google Fiber, they use the information collected between your TV viewing and internet usage which is their main source of profit.
To give perspective on companies such as Comcast and TWC, of which I am an employee of one of them. Last year I W2'd at $43k gross, my unpaid benefits (company paid Life, D/D, medical insurance, pension, 401k contributions) totaled just over $22k. Add into that cost of labor fuel, tools, materials, equipment, and my company puts over I would conservatively estimate over $90k per year for me to accomplish the work I do on a daily basis. I also receive complimentary cable/internet primarily because I am able to identify issues in my area and to have product knowledge. One of these banked over $5bil in profit last quarter I believe, of which some of that is kept in the bank, and some put towards expansion of services and territories. I'm also a shareholder, and am concerned with profit as my investment becomes more valuable with larger profits.
Cable companies don't data mine in the way Google does, therefore they have to make profit from subscription costs. I won't shed a tear when I have to foot my portion of the bill this November when my next child is due, even though the costs of simple medical supplies is ridiculous. Quite simply it works like this: if a company provides a service, at a specific cost, and you pay that cost monthly, they won't change. Take your money elsewhere, and if enough people do, they will reduce cost to drive a subscriber increase. Don't sit and complain and keep paying for something you don't like, and if they are the only provider capable of providing what you want, then either deal or encourage the competition to up the game.
AMD/Intel are probably the closest competition to this forum. Many of you are willing to pay up to $200+ extra for Intel which performs better than AMD even though AMD is the price you would like to pay.
Flame on and rage about it. Complain that they pay too much for techs and that's part of the problem. Complain that a company is interested in profit. When you bought a new house, did you complain that the GC was cut a check for somewhere in the $15-$20k range AFTER the cost to build the house, or that the broker received a 6% cut of the sale price when you sold it?
It's all a simple economic fact known as fair market price. It's not a rule, just a standard.