Microsoft's Sync parts cost Ford about $30

By Ed Oswald, BetaNews

February 22, 2008, 5:44 PM

While a complete teardown analysis has yet to be made available, iSuppli said Friday that the six major semiconductors within the Microsoft-developed system only cost the automaker about $27.80 per vehicle.

That price comes in far below any of Ford's competitors, whose estimated expenditures per vehicle are as high as $800 for similar systems. As an option, Sync is priced at $395 and available on most Ford, Lincoln, and Mercury models.

Freescale makes up the majority of this bill-of-materials cost at $15.80, through its 400 MHz ARM processor and CAN Bus microcontroller. Add to that $1.75 for Cambridge Silcon Radio's BlueCore device which supports phone book, media control, audio transfer, and hands-free functionality.

Cirrus Logic's audio codec adds another $1.65, while a Micron mobile 256 MB DDR SDRAM added another $4.80. Finally, a Samsung 2 GB NAND flash chip completes the major semiconductors with a estimated price of $3.80.

"Other auto makers are smarting in the face of Ford's triumph because of the high costs they are facing to develop similar systems," automotive electronics analyst Richard Robinson said. "Ford has stolen a march on the rest of the auto business with the Sync's impressive functionality and low cost."

Ford will enjoy this price advantage on the Sync system for an extended period of time through an 18-month exclusivity pact with Microsoft. But with the potentially large savings created through Sync, its likely others will jump on board soon.

In fact, media reports indicate that another partner for Sync will be announced by the end of the year, so Ford's honeymoon could be coming to an end sooner rather than later.