How to get in the News? Tell people that you will make and sell something which cost you $20 for $9!

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Probably everybody heard for the next big thing after Raspberry Pi – the C.H.I.P. computer which sells for only $9.

What?? Single board computer with 512MB RAM and 4/8GB Flash and WiFi for only $9?

When Raspberry Pi foundation advertised they will make Linux computer for $25 very few believed this is possible, then after some time hitting rocks on the road they made partnership with Farnell and RS and made this happen. Actually lot of Android TV sticks in this price range were available so the technology was there just nobody from Western world had explored it.

The Rpi got quite successful, so lot of companies followed in the aim to make the next better Raspberry Pi (we at Olimex also 🙂 went to this route with OLinuXino OSHW Linux computers fixing the fact that RPi is closed source design).

The $35 was the magic number if you come close to it more chances to attract people you have.

Then few weeks ago there was the next big thing – computer with the specs of Raspberry Pi for only $9 on Kickstarter.

This blew people’s mind – they start fantasies like how Allwinner produce 1Ghz SOCs for $1 like on this thread on G+.

These guys plan was set for sale of 5000 computers, we purchased more than 150K SoCs chips from Allwinner last year alone and I know the DDR and Flash memory market, so I was quite skeptical this $9 is achievable even for the Bill of Materials not for sale price.

I asked Allwinner for quote and got $4.80/5K order (which is the original Kickstarter goal of Next Thing Co. guys). I assumed this price is for the module they use with the 512MB RAM and 4GB Flash (despite just the DDR and Flash exchange market price is higher than this number, well I hoped Allwinner manufacturing this module have some magic prices not applicable for mortals with the million of units they sell :).

Today I got datasheet of R8M and price of it is $16 including the PMU. Whaaat? Just the module is $16 but these guys sell this module on board with connectors and WIFI for $9 how this is possible?

I asked Allwinner again if there is mistake and they confirmed there is no mistake, R8 price is $4.80, R8M module price $16. Allwinner confirmed R8 just SOC cost $4.80 but this makes not much sense either this is the price of A33 quad core SOC why they price so expensive obsolete A13 Cortex-A8 SOC???

On my question how then Next Thing Co. sell this computer for $9 Allwinner response is:

“CHIP 9$ computer launched a big advertising campaign to promote their new development board, their actual cost is higher than 9$. After the Kickstarter their computer will sell for 39$.”

So, sorry guys to break your dreams for 1Ghz SOCs costing $1, maybe in future this would be possible, but not now.

The C.H.I.P. is just CHEAP marketing. At least for me R8 is not interesting at this price, better use A33 Quad core or H3 for your next design they are in same price range.

EDIT Update 08-06-2015: On the question why R8 cost is same as for quad core processor the response from Allwinner is:

R8 is new IC just published especially on IoT, it is not like A33 this one had used on a large scale forTablet PC.

So R8 is more expensive as produced in lower quantities than A33 which is selling for tablets in big volumes.