I'm sure their unit costs were lower than their unit revenues, but it was the R & D costs that did them in. They couldn't just charge more to cover R & D, beca

I'm sure their unit costs were lower than their unit revenues, but it was the R & D costs that did them in. They couldn't just charge more to cover R & D, because you need to hit a price point that your target audience will pay. They could have gone for a higher price point, but then they're competing more directly with Apple and other premium brands like Gamin. Investing in R & D to fuel future growth is a normal and reasonable thing to do. It just didn't work out for them, as it turned out the overall market for this product category isn't growing as fast as early indications suggested it would.