In the case of NPI (New Product Introduction), corporations are usually most interested in estimating the cost of a new product at volume production levels. If a company is too conservative in their pricing estimates it may choose not to bring a product to market, too aggressive and the product may not reach the profitability levels that the corporation demands.
Lytica’s Price Estimator application is intended for predicting production level pricing.
NPI pricingis supplier dependent and can range from free samples to many times the production price. Devices with low production volumes most often have their price determined by the commodity spending rather than at the individual component volume level. If the component islow volumewithin a larger volume commodity, then the Price Estimator estimate is reasonable. If all components within a commodity are low volume the competitiveness level would be low and the price estimates would reflect this fact.