why is arduino so expensive when chip is only $9?

arduino uno r3 costs $25..but its got lower capabilities than the $9 chip... why is that so?

edit (24th june 2015): am talking about the CHIP kickstarter (CHIP - The World's First Nine Dollar Computer by Next Thing Co. — Kickstarter)

Do you not think there is a cost for the pcb, ancillary components, design, distribution etc?

Weedpharma

Not to forget this forum with millions of posts, questions, tips (and some spam) for free ...

I forgot to mention the stipend for the developers.

Weedpharma

There are quality check on the product and documentation too. I personally think open source is invaluable, same for this huge community. You are not only buying a piece of electronics.

thanks all

weedpharma:
Do you not think there is a cost for the pcb, ancillary components, design, distribution etc?
I forgot to mention the stipend for the developers
Weedpharma

but i think even the CHIP guys also have to think about these costs.....was just wondering how they manage to cut costs so drastically

mastrolinux:
There are quality check on the product and documentation too. I personally think open source is invaluable, same for this huge community. You are not only buying a piece of electronics.

robtillaart:
Not to forget this forum with millions of posts, questions, tips (and some spam) for free ...

even chip is open source and will end up having a community around at

please note that am not rooting for chip or anything of that sort. just curious how they cram raspberry-like features in about a third of arduino's costs

cloud9:
arduino uno r3 costs $25..but its got lower capabilities than the $9 chip... why is that so?

You are referring to CHIP Microcontroller rather than just a chip.

Not everyone is familiar with every new device on the market.

Why not put that in the OP?

Weedpharma

weedpharma:
You are referring to CHIP Microcontroller rather than just a chip.

Not everyone is familiar with every new device on the market.

Why not put that in the OP?

Weedpharma

oh totally forgot to mention that....apologies everyone.....what am talking about is the new CHIP device.
thers also a kickstarter campaign around it here:
https://www.kickstarter.com/projects/1598272670/chip-the-worlds-first-9-computer

maybe they spent all that money thinking up a more web-searchable name! "CHIP Computer" is right up there with "Wiring" and "Processing" in uselessness :frowning:

I'll save my comments till when I can go down to the local store and buy a "CHIP" (or compatible) for $9 ...

I always thought that an Arduino, at $20-30, was pretty much perfectly priced. A well-equipped electronics hobbyist can build one for less than that, but a beginner really can't. If you create something salable, you can certainly incorporate key arduino elements for mere parts cost, even without giving up low-volume manufactureability. that's something that has always bothered me about the small linux computers (RPi, beaglebone, etc) - even if I could buy parts in small quantities, they seem to be pretty far beyond my ability to assemble :frowning: (arguably, at $9-30, I don't need to; I can just incorporate the modules.)

As a matter of fact, I have heard about the CHIP exactly once. If I google "CHIP", the first hit is "Children's Health Insurance Program". :slight_smile:
But the CHIP computer is the first hit if I search CHIP computer. It actually looks pretty sweet with 512 megs RAM, 1GHz processor, and 4 gigs of storage. It also apparently as WiFi and bluetooth. Pretty good for $9!

The CHIP is a kick starter project therefore it is not proven that the pricing supports a sustainable business model.

Often kick start projects underestimate the costs by a long way. Will it be FCC and CE approved like the Arduino? They do not say, that costs some.