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I'll try to explain this from the point of view of someone who has tried to bring a bloatware-free hifi system to market: Chinese copies + Amazon = flood of sh
by fxtentacle 1y ago
I'll try to explain this from the point of view of someone who has tried to bring a bloatware-free hifi system to market:
Chinese copies + Amazon = flood of shit
It takes years to design, test, build prototypes, measure, re-design, re-build, calibrate, certify and produce a good hifi audio amp. That means you start your product journey with $500k in debt and unless you can show how you're going to sell enough units to recover this, your project is dead before it ever started. You typically need to sell at 8x of your real costs, because shipping companies, import agents, wholesalers and retailers all want (and need) their margins. If I expect to sell 2,000 units per month (which is A LOT already) for 2 years, then I need to add about $10 to my costs per unit to recover the R&D expenses. And that means as long as Amazon is happy to turn a blind eye on IP-infringing blatantly obvious clones that typically even re-use my product images or slogans or brand names ... then my "original" product will be undercut by $10x8 = $80 in price by Chinese clones. They don't have R&D to recoup because the can just buy my product, x-ray the PCB, and then make duplicates. And trying to get Amazon to follow the law is like playing expensive whack-a-mole with lawyers. It won't help to recover money.
That means as the manufacturer, I have exactly 1 way left to recover R&D expenses:
I lock down the software. And then I either shove ads in your face, or I bully you into a subscription. Or if the ads pay too little, both.
I hate the situation as much as you do, but I also see no better way forward. Nowadays, you need to plan for the flood of shitty clones on Amazon a week after launch. (Or in some cases, even before the original product clears import customs.) And that means you treat hardware as cheap and disposable, because your competitors do that and unless you join them, you're at a huge market disadvantage, because the average customer cannot tell the difference between a low-quality and a high-quality capacitor. (And Amazon doesn't care.)
https://www.cultofmac.com/news/selfie-stick-iphone-case-gets-cloned-before-it-even-exists https://www.cultofmac.com/news/selfie-stick-iphone-case-gets...
(And please note that these guys even had US patents on the product. Didn't help them, though.)
- ChoGGi 1y ago> They don't have R&D to recoup because the can just buy my product, x-ray the PCB, and then make duplicates. Too much effort when they can just go to the company making them and get cheaply made copies :)
- fxtentacle 1y agoNo, you actually want to reverse-engineer the PCB so that you have schematics. That allows you to more easily replace components with cheaper alternatives and/or modify the firmware to continue working on your unintended hardware. (Fake products typically replace the on-board components with cheaper variants, like using lower-rated caps, to squeeze out a tiny bit more profit margin. Like really in the $1 per 10k units range.) Plus PCB x-ray is a common thing that also reputable manufacturers do for quality control or security assurance (e.g. Is there a HW backdoor in this mainboard?) so you can just book that as an affordable service. I remember Siemens recently bought a PCB RE provider, but I can't find the news article anymore. To give you some price ideas: 10x10cm 4-layer PCB x-ray and RE: $200 STM32 firmware dumping: $700 EEPROM dumping: $300 The STM32 is the most expensive because you need to decap them to get the hardware encryption key. But it's still A LOT cheaper than building your own firmware from scratch.
- ChoGGi 1y agoI took the cheap joke route, but thank you. That was informative.