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+ - Why Can't Industry Design an Affordable Hearing Aid? 1

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Hugh Pickens writes
Hugh Pickens writes writes "Tricia Romano writes in the NY Times that over the last 10 years, purchasing a hearing aid had become even more difficult and confusing than buying a new car — and almost as expensive. "I visited Hearx, the national chain where I had bought my previous aids. There, a fastidious young man spread out a brochure for my preferred brand, Siemens, and showed me three models. The cheapest, a Siemens Motion 300, started at $1,600. The top-of-the-line model was more than $2,000 — for one ear. I gasped." A hearing aid is basically just a microphone and amplifier in your ear so it isn’t clear why it costs thousands of dollars while other electronic equipment like cellphones, computers and televisions have gotten cheaper. Russ Apfel, an engineer who designed a technology now found in all hearing aids, says there is no good reason for the high prices. “The hearing aid industry uses every new thing, like digital or a new algorithm, to raise prices,” says Apfel. “The semiconductor industry traditionally reduces the cost of products by 10 to 15 percent a year,” he said, but “hearing aids go up 8 percent a year annually” and have for the last 20 years."
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Why Can't Industry Design an Affordable Hearing Aid?

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  • 1. The sales channel takes high margin because the cost of sales is so high
    2. The manufacturing volume of these is quite low, so amortizing the moulding tooling, ASIC mask set etc is high and the custom ICs will be lwo run too, so relatively expensive.

    Lastly, remember that manufacturing cost has no relationship to selling price. Bought a pack of electric toothbrush heads recently?

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