we build hardware (flair.co) and have just started shipping (woot!) and I think the trick with hardware is figuring out how to do the 'software wrapped in plast

we build hardware (flair.co) and have just started shipping (woot!) and I think the trick with hardware is figuring out how to do the 'software wrapped in plastic'. If goPro was quicker to move into video storage and editing to go with their cameras or fitbit managed to push on fda approval and share data with your doctor (or their own doctors as a service) they could do some really cool stuff (and have really cool revenue...). Its not that as a stand alone product its not compelling - reminder, they IPOd... Looking at them and calling them failures is such a myopic perspective if you talk to any preseed, seed or A stage company. The trick is building a killer product and not worrying about the service if you can. Then transition over to a service model, selling leads, data, tools etc. If you can layer on services early on, thats fine, but not needed. If you never do it, it will come back to bite as challengers show up and erode margins and you saturate your 'ideal customer' market.