First up is Advanced Micro Devices (NASDAQ:AMD), which builds the Xbox One's processor, and sells it under its semi-custom SoC, or system on a chip, sub-segment. At a cost to Microsoft of around $110 per chip, AMD's processor is the single most expensive component in the Xbox One.
But the Xbox One wouldn't be able to do anything without actual power, right? Or, rather, power-management hardware, which is where Texas Instruments (NASDAQ:TXN) comes into play. TI supplies six components in the Xbox One -- four contained in the console itself, and two inside the Kinect -- all of which are dedicated to power management.
Finally, consider Marvell Technology Group (NASDAQ:MRVL), from which Microsoft not only purchases Wi-Fi and Bluetooth components for each Xbox One controller, but also two wireless chips for every Xbox One console. More specifically in the console, the first is a combined MIMO chip to handle 802.11ac Wi-Fi, NFC, Bluetooth, and wireless HD video streaming, while Marvell describes the second as a "highly integrated [WLAN SoC] specifically designed to support high throughput data rates for next-generation WLAN products."
Steve Symington owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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