Well here is the next chapter in the CrunchPad saga. And, just as I predicted, as this device approaches shipment, the actual price that is being quoted is approaching something that makes more sense to an engineer. As usual, talk to a marketeer and he tells you what you want to hear, talk to an engineer, and he tells you what can be done. Marketeers sell products, but engineers deliver them. The effective migration between these two endpoints connotes a successful business. Arrington's CrunchPad, and perhaps Fusion Garage's JooJoo, although interesting, does not exemplify best practices in this area. In fact, they are showcasing mostly What Not to Do.
Back to the main event. The JooJoo is now quoted as shipping for $499. Amazing. Seems like I called this very price. Actually, it was quite simple to do once you know the size of the touchscreen, since the display cost is driving the price more than anything else. The only other variables are the presence of a subsidy model [which obviously the JooJoo does not have], and acceptable margin. It is also obvious from the $499 price point that Fusion Garage is willing to sell products for a razor-thin margin in order to buy market share. If Apple were selling the exact same product, it would be priced higher.
According to Fusion Garage, you should be able to order the JooJoo on Dec 11 by going to www.thejoojoo.com.
Fusion Garage's Chandra himself was quoted as commenting on Arrington's price predictions by saying "There are dreams, and then there are hallucinations."
That pretty much says it all.
Subscribe to:
Post Comments (Atom)
Actually the marketer will tell the engineer what reality is in the marketplace and the engineer will always say that they can't get there. When they do, that's a successful business.
ReplyDeleteRemember the $199 price point for a point-and-shoot (with zoom)? Can't be done. Or how about the $99 digital picture frame? Not possible!
But at $500 I think it's beyond the edge of credibility. this is a $199 product, maybe $299 if it's REALLY, REALLY well executed.
Wow...you aren't biased are you? Seriously, I think I agree with you about the Marketeer. I said "talk to a Marketeer and he tells you what you want to hear" which is essentially the reality of the marketplace as you put it. But come on, an engineer will not "always tell you he can't get there". Engineers deal in numbers. They either add up or they don't. Marketeers deal in perception. That is where things can change rapidly.
ReplyDeleteAs far as the $199 point and shoot, just like the $99 version goes, they couldn't be done when that statement was said. Everything changes. If you read my recent post you'll see that I said a $99 tablet will be possible...someday. Just not now.
me, biased? nah, never happened!
ReplyDelete