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Good luck to them. My cigarette-packet maths says that the BoM cost is about $12 at Shenzhen prices. If they gain any traction, they're going to get killed by t
by jdietrich 10y ago
Good luck to them. My cigarette-packet maths says that the BoM cost is about $12 at Shenzhen prices. If they gain any traction, they're going to get killed by the Chinese clone merchants. They don't appear to have much in the way of defensible IP, so the healthy margins on that $49 retail price are going to get squeezed hard.
- deleted 10y ago[deleted]
- RickS 10y agoif it tripped anybody else up, BoM = bill of materials
- tyingq 10y agoWhich is just the pile of unassembled parts, thousands of miles from where they eventually need to be :) Meaning BOM != cost
- sampullman 10y agoNot really, a decent BOM will include assembly fees, logistics, factory profit, and freight for parts (which is negligible with quantities over a few thousand). Of course if the product is successful, they could be undercut by Chinese OEMs. However, if they get to that point I'd bet they would have enough branding momentum and community that it wouldn't be a major problem.
- tyingq 10y agoIn the PCB world, a BOM is just the parts. Doesn't include, for example, the PCB itself, plastic cases, etc...nor freight, assembly.
- paulddraper 10y agoI thought it was byte order mark.
- Paul_S 10y agoIt's so niche it'll fly below everyone's radar.
- andrewmb 10y agoCan you back out $12?? I would put the BOM closer to $6 if I'm going with the high estimate, and more than half of that cost will be driven by the ATMEL and OLED.
- jdietrich 10y agoYou're absolutely right, I was far too generous. For a sensible size of production run, your $6 figure is much closer to the mark. I made some faulty assumptions about the amortized cost of tooling for the plastics and over-estimated the cost of both the OLED module and the li-po. In my (pointless and lousy) defence, I'd say that I'm used to making extremely conservative estimates, because nobody ever got fired for coming in early or under budget.
- pkaye 10y agoDo these Chinese clone merchants have an email where I can send them ideas for products where there is a need so I don't have to go to the hassle of building out an idea myself and just enjoy the final product?
- jansenv 10y agoNo, but it is possible to get integrated into those communities. Normally you need an agent at first.
- formula1 10y agoIm assuming they way they work is supply existing demand with a cheaper product. Much less risky than attempting to entire an untested market
- thesmok 10y agoIf you are able to CAD a product then chinese manufacturers will be happy to manufacture it. SeedStudio seems to be popular for that.