3 ms·
If your margin is 35, you are going to go out of business unless you can find a way to create additional revenue streams. Your customer lifetime value is likely
by briandear 9y ago
If your margin is 35, you are going to go out of business unless you can find a way to create additional revenue streams. Your customer lifetime value is likely going to be less than 100, if that. If you sell a million customers (which I think is a very difficult number to reach with this semi-niche phone,) you are going to still be struggling over the long term. A 10% margin is not enough. One misstep wipes out your margin. Also with each phone you sell, there will be additional support and warranty expenses that likely haven’t been added to your unit cost.
If wish you good luck of course, but just be aware that building the phone — that’s the easy part: sales, support and the software — that’s a lot of “stuff” that costs significant money — an expense that continues past the shipping of the actual device.
There are two ways to win in the phone business- market share/volume or profit per unit. You are also competing against established manufacturers with essentially a barely-deferentiated product and, given your margins, customer acquisition is going to be very, very tough.
If it were me, I’d work on a completely new OS — I’d build an entirely new thing rather than just something marginally different — and ostensibly, marginally better. A generic phone with a different flavor of Android — do you really want to go up against the Samsung’s and Huawei’s?
No disrespect intended — I hope you succeed!