1. Component Theft Why computers are so expensive

2. How much theft is there? $8 billion annually

6. The Gray Market The thief steals the components and usually has a client arranged before the theft occurs.

7. The Gray Market The thief delivers the components to the first broker 30 minutes to 2 hours after the theft. Payment is made in cash on the trunk lid of a car. Thief get 10 cents on the dollar for the components.

8. The Gray Market Black market brokers sell the chips to gray market brokers within 2 to 4 hours of having received them. Purchase is usually paid for in cash and no receipt is given. Price mark-up is 25-50%

9. The Gray Market Gray market brokers sell the components to ligament customers. Sales conducted in store fronts. Payment may be cash or credit card. Buyer gets a receipt of the sale. Price mark-up is 10-50%

10. The gray market From theft to final sale is usually within 72 hours. After 72 hours, the components are untraceable.

13. Software piracy Cost the consumer $12.8 billion dollars in 1993