Where does HDMI cable come from? Prepare to be surprised!

I saw this and thought I'd share. Some very good information about where HDMI cables come from, why their prices run both ends of the spectrum and what the "true" difference is between different manufacturers of HDMI cables.

Quite a good read if you're into the "techie" side of things when it comes to A/V cabling.

Where Does HDMI Cable Come From?

 

Not suprising, really. Pretty much the same as the ODM/OEM setup with laptops when you think about it. Unless you are still of the mind that you should only try to buy American to support manufacturing or something, the fact is that most of the money goes to the people that do the value-added work of design, patent holding, and marketing/sales, and this is true for almost every product. Honestly, what country something is made in doesn't matter much to me. What matters is who's specs said product is manufactured to, and how closely those specs are met.

 

That was a neat read...
Thanks for sharing!! I use HDMI cables for my TV & my lappy to TV connect!


Cin

 

Wow!! And I thought I was the only one who used HDMI cables for the exact same things .

Well the article sure shed some light on reality. I had no idea that HDMI cables weren't made in the US. Make me wonder what other products we use aren't made in the US.

Outsourcing... its slowly eating away at the US economy .

 

And making once third world nations rich from their human resource

 

It's not really making us poor, that is a myth. As I said, the vast majority of the money stays in the US. Manufacturing is one of the lowest value add points in the chain these days. I remember seeing something about iPods, I forget the exact numbers, but the split of where the money goes is something like 15% to raw materials and parts vendors, 10% to manufacturing, and 75% to design, branding, retail, and marketing, which all get done here. It is true that manufacturing is leaving this country, but we still keep most of the money. The fact is in a globalized world, until everyone is equally rich (which will eventually happen), unskilled labor will be done for the minimal cost possible, which means manufacture in the 3rd world.

 

Nope, your not the only one! And, yeah it was a good article to read!


(I ordered my HDMI Cables from Meritline, great deal 2 6ft cables for $7)

Cin

 

On the subject of economy, I was focused on lack of labor and resources, but I do understand where you're coming from. I don't believe I said anything about us being poor... even with all the recession hype.

Wow what a steal! You must teach me the ways of the true bargain shopper. I don't believe I've seen anymore food posts Cin'! We college students are going hungry

 

Thats an amazing deal for 2 6ft cables....

 

I share the same surprise and somewhat incredulity of the manufacture of HDMI cables. I've always wondered why there was such a disparity in the pricing scheme of HDMI cables. For example, why an enthusiast can go to a place like Meritline and get HDMI cables for a couple bucks, while places like Best Buy sell Monster Cable branded HDMI cables in excess of $100 or more.

All things being equal (which in the article they apparently are) there is no real difference between the affordable cables at Meritline and the expensive stuff sold at the big-box retail chains. Which brings up an interesting point. Monster Cable tried to bring legal action against Blue Jeans Cables for impinging on certain patents/IPs. Unlike other companies that folded under Cable Monster's legal pressure, BJC fought back.

It's another really good read, which offers additional insight into the cut-throat (and extremely lucrative) world of A/V cabling. Check it out:

Monster Cable Litigation - Slaying Monsters

 

The article doesn't really say there is no difference between cables. In fact, to the contrary, it says the patents and IP for many of the more advanced/novel/high end designs are held by US companies who just have factories in China do the manufacturing. I'm sure there is less diversity than some companies want to admit, but just because 2 things are manufactured in the same giant Chinese factory does not make them identical. In fact, from a certain standpoint, we benefit from the model that has developed here. If each cable seller had to support the cost of an HDMI license, prices would actually probably be higher, as that $10k flat rate fee would be spread over fewer cables per year, meaning higher cost passed on to the consumer.

Think if ODMs in laptops. Just because a handful of ODMs make 99% of the laptops out there doesn't mean that the branded lappies we buy are the same, but we get cost benefits from centralized cheap manufacturing. I have a suspicion that this HDMI thing is pretty much the same. I'm not saying everything about this system is good, just that it's not as clear cut as some would suggest. Also, keep in mind that this article is ultimately marketing material. They have a strong financial incentive to provide a certain perspective on things.

 

These same advanced/novel/high end cable designs, while covered by patents and IP by other companies, are still "sold" on a royalty basis to other companies. The difference being that each company brands their company logo on the cable/packaging, and allows their marketing department to tout the cables features and technologic advances.

Which is why there are so many expensive cables brands which offer the same benefits as the others (essentially the exact same cable), yet all may be based off of existing patents and IP that the company pays a royalty for to tout the cable's superiority.

 

True enough. My point is just that things aren't as simple as "all these things are made by the same people so brand means nothing omfgbbq!"

 

displayport doesn't have any royalties