Why is the price of the same optical module so different?

Why is the price of the same optical module so different?

The same optical module, the price difference between different brands is quite large, some traders/factories price difference is larger, in addition to the brand is not the same, what is the product different?


As is known to all, the network distributors and integrators at the time of purchase, description of the optical module specifically for rate, wavelength, single-mode/multimode, parameters and distance, as the saying goes, Shop around, generally experienced purchasing manager will ask several suppliers for price, the same optical module, often get different price, even the price difference is very big. What is the reason for this?


1.Brand premium ability


Big network equipment manufacturers such as Cisco and Huawei have well-known brands all over the world, so the price of their optical modules is much higher than that of the three-party optical module manufacturers. In addition, not all network equipment manufacturers produce their own optical modules, many of them are OEM by professional optical module manufacturers.


2.Cost difference of optical module components


The raw materials for optical modules include optical devices, circuit chips, PCBS, and structural components. Optical devices account for 73% of the cost of optical modules. In terms of optical devices, TOSA (transmitting component) accounts for 48%, ROSA (receiving component) accounts for 32%, accounting for 80% of the cost of optical devices. The cost difference between imported optical devices and domestic optical devices is very large, so there will be a price difference in the price of finished products.


3.In terms of purchase quantity, bulk purchase is relatively cheaper


For the purchase price, distributors and retailers will be different, it mainly depends on the amount of a single purchase, large quantity is better this is the truth that has never changed.


4.Secondhand renovated products flood


Optical modules are inserted into switches, servers, and storage devices. Generally, they are not removed after being inserted. Therefore, even after being used for a period of time, you cannot see the whether the appearance of the optical module is new or old one. So a second-hand refurbishment industry was born. After a few years, when some computer rooms were upgrading network equipment, the original optical modules would be sold. Where did the equipment go? Conscientious businesses will sell second-hand products, and non-performing businesses will refurbish as new products to sell. Although there will be no problem in the initial use, optical modules that have been used for several years will be greatly compromised in product performance and stability, and there is no guarantee of after-sales service. Finisar is the world's largest and most technologically advanced supplier of optical communication devices, but its optical module products in China are much cheaper than many of the original manufacturers of optical modules, that is significant.


5.Confuse one thing with another & Brand fraud


On many social media platforms and online B2C platforms as well as offline, we can find many network equipment suppliers of big brands selling optical modules of big brands at attractive prices, including some refurbished second-hand equipment. There are even desperate risks, shoddy, fake, they print big brand logo themselves, sell as brand products for high sales. To believe that the law of justice has long arms, in the efforts of the original factory and the police, these illegal vendors are constantly arrested, and consumers will face the problem of unable to get after-sales service, so please polish eyes, not because of temporary greed and loss.


Therefore, to sum up, it is wise to find a stable third-party optical module factory, which can enjoy superior price, and has quality and after-sales guarantee. Trustnuo is a premium brand of optical modules in China, focusing on optical communication field for 10 years, investing in product research and development continues to expand the proportion every year, and is committed to providing better products and services for customers in the communication industry.

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