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Funny IR send me an email saying outsourcing are the same cost $0.55 as in house.
Maybe they have more than 1 trues???

If you count the savings in shipping costs of 1-3c, that would put outsource costs same as internal costs+shipping costs.

Thanks Pop. That adds color to the picture. I think here they included expensive options like module and foreign.

It's lower than I expected, but explanation must be that it is hard to sell non-branded products, so lines achieve utilization through contract OEM manufacturing to just about cover depreciation cost and thus give them some needed cashflow.

Quoted from "explo"

It's lower than I expected, but explanation must be that it is hard to sell non-branded products, so lines achieve utilization through contract OEM manufacturing to just about cover depreciation cost and thus give them some needed cashflow.

Not at all, if you take a cell for $.40 and convert it to a module the inhouse cost is ~$.15-$0.17, but if you take out all the component costs you may arrive at just ~5 Cents, additional 1-3 Cents is a lot of money in this sense.

outsmart, you mean if not only major components like wafer for cell tolling or cell for module tolling are supplied together with the shipping and handling, but all the other stuff like silver paste, aluminum and glass etc.? Yes, then I guess the tolling production cost is just depreciation, water, electricity and labor and 3 cents becomes quite a big gross margin. But is this the normal case for tolling arrangements?