Does it really costs nearly £3k to manufacture a 5dmk3 or are canon ripping us off?

As the title says, does it really cost a lot to manufacture a 5dmk3?

How much does sensor cost?

the digi 5 processor?

The AF system?

All the egonomics(outside shell material, buttons and screen).

Surely all of the above doesnt cost THAT much?

No, but they do need to build in profit and cover the cost of R&D into the price. Cost is more than just manufacturing cost.

Well there's also design and manufacturing/labor cost aside from the cost of the parts.

You forgot

- R&D Costs
- Marketing and Advertising
- Shipping
- Insurance on Shipping

...and a bunch more!

You forgot the most important aspect: profit.

FlyingPhotog wrote in post #14029113
You forgot

- R&D Costs
- Marketing and Advertising
- Shipping
- Insurance on Shipping

...and a bunch more!

Even with all that mentioned, does it all add up to 3k?

I see brand new cars that require a hell of a lot of R&D, far more components to manufacture etc for nearly double the price of this camera.

Also see many Gaming PC's, Ipads etc that all have some hefty computer specs inside them yet dont cost an arm and a leg.

Maybe teh AF system costs more then a typical computer quad core processor? I dont think it does considering teh VAST R&D work that goes into them and the amount of calculations, algorithms being done too. I personally just cant see where this 3k price mark comes from?

jrmy wrote in post #14029149
You forgot the most important aspect: profit.

Doesnt the 5dmk2 make a profit at its current price point?

If it were really easy, everyone would be building high-end cameras...

Capitalism, how does it work?

jonneymendoza wrote in post #14029150
Even with all that mentioned, does it all add up to 3k?

I see brand new cars that require a hell of a lot of R&D, far more components to manufacture etc for nearly double the price of this camera.

Also see many Gaming PC's, Ipads etc that all have some hefty computer specs inside them yet dont cost an arm and a leg.

Maybe teh AF system costs more then a typical computer quad core processor? I dont think it does considering teh VAST R&D work that goes into them and the amount of calculations, algorithms being done too. I personally just cant see where this 3k price mark comes from?

But you got to scale things. Sure cars can be made for double the price, but they are also more in demand by many, many more people. Plus, the part cost of cars can be shared across all makes/models of a manufacture's car (carpet, fake leather, nuts & bolts, for example).

Ever heard this one: "Does it really cost $25 (or $50, $100 or even $150) to print an 8x10 for me?"

Seems to make more sense when you think of it that way, doesn't it? Or should we be selling 8x10's for $2.00?

Canon makes really good profits on cameras and lenses. I'm sure there must be a lot of pressure to make as much profit on these goods for as long as they can. Canon understands the market and what they can get for selling a specific good like the 5d3. If the price ends up being too high, and they sell fewer than what has been projected as well as produced, they will adjust.

I've come to the realization that around the world there are a lot of people with plenty of money to spend on luxury items. Canon shouldn't have any problems selling a lot of copies of this camera, even at the price point to which they are asking.

Well, how many millions did it cost to develop the 5D3, over how long, with what resources, both people, labs, chip fabrication testing and facilities etc etc.

They have to pay back those millions in R&D costs, and then start making profits - by which time the intensive competitive market has forced prices to drop 20% or so.

The actual physical cost of parts and assembly is only one small part of pricing a product - this is Economics 101. If you can't afford a product, or don't think the cost is worth it, you don't buy. Eventually prices come down, but early adopters always pay more - but then they get longer ad earlier useage from it to pay back the cost of ownership.

In addition to the factors above, there's also the consideration that a camera body is a high precision construct compared to slamming computer components into a case on a production line.

Even with automation, you still have the casting of a precision magnesium chassis, drilling and tapping screw holes, machining precisely so lens mount > sensor plane distance is exact, plus the complexity and assembly of shutter and mirror box components. None of that comes cheap. Then there's the calibration required so all the myriad electronic components speak nicely to each other.

I don't know for sure, but I suspect tolerances are tighter in the higher end cameras than you'd get in a T3/1100D.

scobols wrote in post #14029269
Ever heard this one: "Does it really cost $25 (or $50, $100 or even $150) to print an 8x10 for me?"

Seems to make more sense when you think of it that way, doesn't it? Or should we be selling 8x10's for $2.00?

This is an excellent way of stating the argument.