RE: [APML] OT: New 35mm Astro CCD camera

["Gene Horr" <genehorr@houston.rr.com>]

Tony:

I agree with Dave's assessment.  I have a background in various
manufacturing
operations.  I highly doubt that their gross margin is much if any less than
50% of their sales price.  And from that they have to pay all of their sales
and admin expenses.  Net margin is probably close to 25% which they use to
recap R&D and hopefully have a little left over to pay Uncle Sam.

The cameras are IMO priced reasonably.  If they decided to become
more agressive due to competition or a potential new market they could
lower the price, but you are looking at decreases in the 10-20% range.
It would be nice but not the great drop that I think that you were wishing
for.

>From what I read several years ago CCD manufacturing uses an older,
limited manufacturing method.  Wafer size is limited to 4" and there
is a material defect area.  I don't know what the average defect %
is, but if you assume 10% of the area and are making teeny tiny
chips for consumer cameras you generally won't have much more
than a 10% loss.  If you are only getting 4 large chips out of
that wafer you have a 25% loss at a minimum.  Add to that the market
for the larger chips is extremely small and you can see why the
chips appropriate for astronomy are so darn expensive.

And SBIG has no control over that price.

Gene Horr
genehorr@houston.rr.com

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