I disagree with this. By starting at the low-end, you will never be able to "out-cost" cheap Chinese manufacturers, with their economies of scale. Across all in

I disagree with this. By starting at the low-end, you will never be able to "out-cost" cheap Chinese manufacturers, with their economies of scale. Across all industries - (Apple with the original iPhone, Tesla with the Model S, etc.), the hardware startup value proposition is in the high-end. You have to create a sustainable, innovative value proposition. That's easier for a startup to do (much harder for a big company to take a "leap"). Essential thought they had one with their "camera" system, but it didn't catch on.