DJans wrote:Real high tech mobile phones with OLED, touch, Wifi, navigation,... are sold for less than 150 US$ in the world, you have developed a system using less of that perfomance, you cannot tell me that producing a new soundbridge sold for 150 US$ is not realizable with a good selling profit.
I can...
Some simple facts. Phones are very heavily subsidised by the phone carriers who charge you for every byte of data / second of speech. Buy a high-end phone without a contract to see what it really costs.
Roku never made a cent out of selling the SoundBridge. The costs for the product are very high compared to the typical manufactured costs of consumer electronics at the $150 price point. Despite gains in recent years, media streaming and internet radio is still a niche market. Such products sell in tiny volumes compared to phones.
I have a few connections in the consumer electronics industry. A $150 retail realistically means a manufactured cost of less than $50 out of China. And that is in the US. That $150 will sell at 150 Euro or 150 pounds in Europe due to different business practices and taxes. As has been noted before on this forum, all the margins must be compounded so that each party in the supply chain can make a living, from the component manufacturers (20%), their distributors (30%), the equipment manufacturer (20%), the shipper (10%), the application of import duties (varies - up to 12% or so), the brand (35%), their national distributors (25%), the retailer (30 - 50%), and then the local sales taxes (5% to 20%).
Now check out the cost of those fabulous VFD displays. Add in the other components. Add in the software licences (MP3, WMA, AAC all come at a price - and don't think open source means free - it doesn't). Add in the packaging, etc, etc.
If you can do better, go do it!