Showing posts with label big mac index PC resale in Egypt computer recycling export. Show all posts
Showing posts with label big mac index PC resale in Egypt computer recycling export. Show all posts

Cost of a PC in Big Macs

For the first retail buyer, the cost of the computer is OS ($100) plus programs ($300) plus PC ($300) plus LCD display ($150).

He sells it to his son, without wiping the programs off, for $100. 

The son finishes up and pays someone to wipe it and recycle it for $5 cost.

The recycler resells the monitor for $15 and the wiped PC for $30.

The overseas buyer changes power (to 220 v) on the monitor to new for $10, adds RAM for $5 and reinstalls all the programs, and resell the PC for $60+ profit.

That's a month's salary in Senegal, Cameroon, and many other countries.  So the last guy in the chain actually paid the most for the PC.  In the "Big Mac Index" (cost of a Big Mac in different countries), relative to GDP, the PC actually increased in value at the end of the chain.

The cost of the display unit, incidently, went from  17% of the unit's value to 42%.  The software depreciated the most.

Which is "waste", the recycler who exported it, or the recycler who shredded it?