Switch OLED Costs Nintendo Just $10 Extra, But Retails For Way More
While Nintendo have been lambasted for the minor update to the Nintendo Switch that they teased for most of the year before revealing it was just an OLED screen and a slight storage increase, the company is actually laughing all the way to the bank.
Bloomberg did a breakdown of the manufacturing costs, and found that a 7-inch OLED display from Samsung will cost Nintendo $3 to $5 per unit (all prices in USD), increasing the internal storage to 64GB is an extra $3.50, and the other added components, including console stand and LAN port, add “a few dollars more.”
All in all, the new Nintendo Switch OLED will cost Nintendo roughly $10 per unit more to manufacture.
JB Hi-Fi is currently selling the Nintendo Switch for $AUD449, while you can preorder the OLED version for $AUD539.
Convert that USD$10 to Australian dollars, and that’s $13.40 per unit. The price difference, however, is $90, which means there is a tasty $76.60 profit there, in addition to whatever the previous profit margin was.