Why is the price of the original optical module so expensive?sfp transceivers module manufacture

With the continuous development of optical fiber communication industry, the demand for optical module has increased dramatically. However, the price of the original optical module in our current market is several times higher than that of the third-party optical module.

So what exactly is the cause?

The first is the brand effect, which requires a cost to establish a brand, but the influence brought by the brand is also obvious. Large equipment manufacturers such as Cisco and Huawei are well-known to users due to their unique brand advantages, and it is not difficult to imagine high prices. Even if the product quality of the optical module is good and there is no brand effect, the price is naturally not much higher.

Secondly, there is market monopoly. There are not many well-known network equipment manufacturers, and there are only a few choices for users, so the competition is not too fierce, and the market is almost monopolized by them. There is no fierce competition, which naturally leads to sky high prices. There are too many third-party optical module, so the prices will be much cheaper.

Finally, we don't know enough about the products. The optical module is an industrial product with high technology content, and we can hardly touch it in our daily life. People who know about the optical module are not necessarily familiar with its structure and quality. Only specialized technicians can have a deeper understanding of the optical module. Because end users don't know enough about optical module, they think that only Cisco, Huawei and Huasan are reliable in quality of optical module. They think that if the price is cheap, the quality will be bad. Therefore, no matter how high the price of original optical module is, they can only bear it silently.