Increase In 2nd Batch Price More Likely?


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Gautama

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I believe that Craigx has said that with the additional RAM and NAND the team won't be making any money off of the first batch. Does this mean that the second batch will cost more so that a profit is made?
 
Not necessarily. I think he also mentioned that the first batch would pay for quite a few of the one time investments. Also, prices of components should be coming down and I estimate the production run should be quite a bit larger.
 
Gautama said:
I believe that Craigx has said that with the additional RAM and NAND the team won't be making any money off of the first batch. Does this mean that the second batch will cost more so that a profit is made?
There was a vague hint from Craig somewhere way back (just after the pre-orders started) that there may need to be a price increase for the second batch. I would imagine that the increase in ram and NAND will now be enough to justify a price increase from batch 2 onwards. I would imagine Craig and co will be working extremely hard on getting a good set of productivity/office apps running and a customized interface running on Ubuntu so that it can be billed not only as the ultimate portable gaming device, but also the ultimate PDA/MiD/UMPC.

If it can provide everything required from a UMPC, and we know that the hardware is capable of doing so (just needs the software to be written), then it's competing with devices 2 to 3 times the cost. In which case I can see an extra £20 or £30 being slapped on the price tag.
 
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Pleng said:
Gautama said:
I believe that Craigx has said that with the additional RAM and NAND the team won't be making any money off of the first batch. Does this mean that the second batch will cost more so that a profit is made?
There was a vague hint from Craig somewhere way back (just after the pre-orders started) that there may need to be a price increase for the second batch. I would imagine that the increase in ram and NAND will now be enough to justify a price increase from batch 2 onwards. I would imagine Craig and co will be working extremely hard on getting a good set of productivity/office apps running and a customized interface running on Ubuntu so that it can be billed not only as the ultimate portable gaming device, but also the ultimate PDA/MiD/UMPC.

If it can provide everything required from a UMPC, and we know that the hardware is capable of doing so (just needs the software to be written), then it's competing with devices 2 to 3 times the cost. In which case I can see an extra £20 or £30 being slapped on the price tag.

I don't agree. The price should solely depend on manufacturing costs(with enough profit for the devs, of course). The goal is to get a high number of devices out to the people, to build up a broad community. That ensures its survival in the long run.
 
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I cant see the price increasing, for starters £199 is at limit of what i believe people are willing to pay for such a device, most of the buyers want it for games/emulators over pda features etc imo...

Though the main reason is Craig has said the first batch has paid for all the development costs, parts, research etc, so any new batches bar part costs are 100% profit, and since this project is solely for the community then i don't think he would anyway...
 
Well, it's not entirely a charity project either, though. Craig & co probably want to become rich and famous just like everyone else. ;)
 
Gautama said:
I believe that Craigx has said that with the additional RAM and NAND the team won't be making any money off of the first batch. Does this mean that the second batch will cost more so that a profit is made?
From what i understood, The first batch allowed the pandora team to set up connections with the manufacturers so for the second batch things will be faster ( now that they know what they have to do )
and the reason the first batch didnt make money is not only because of the upgrade in ram, but the costs of moulds, design, w/e thats the idea i got. Its good to hear the pandora team broke even, now we wait for the second batch and see how many people buy it :)
 
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I expect the 2nd batch to be even cheaper, seeing as the second batch will be manufactured without the slowdowns of a first product manufacture, and properly established business relations.

Either way, things look better for the 2nd batchers as time goes on. Less problems, more software, and the pricetag remaining the same, if not lowering.
 
Pleng said:
Gautama said:
I believe that Craigx has said that with the additional RAM and NAND the team won't be making any money off of the first batch. Does this mean that the second batch will cost more so that a profit is made?
There was a vague hint from Craig somewhere way back (just after the pre-orders started) that there may need to be a price increase for the second batch. I would imagine that the increase in ram and NAND will now be enough to justify a price increase from batch 2 onwards. I would imagine Craig and co will be working extremely hard on getting a good set of productivity/office apps running and a customized interface running on Ubuntu so that it can be billed not only as the ultimate portable gaming device, but also the ultimate PDA/MiD/UMPC.

If it can provide everything required from a UMPC, and we know that the hardware is capable of doing so (just needs the software to be written), then it's competing with devices 2 to 3 times the cost. In which case I can see an extra £20 or £30 being slapped on the price tag.

total bullshit. price changes are extremely unlikely- they already had the RAM and NAND before the mishaps, so they knew the status quo all along and didn't have to change drastically. production methods become more efficient, manufacturers are more trusting, sponsorship- these all lower prices of a second batch.

OrR said:
Well, it's not entirely a charity project either, though. Craig & co probably want to become rich and famous just like everyone else. ;)
maybe they can work out a trade with alan moore?
 
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Craigix said that the first batch is paying for the prototype stuff and other costly stuff that is why they are not making any money. after those costs are recouped they will make money on the Pandora.(even with the upgrades)
 
Well it is better to follow the numbers in the price you announce and hit zero in the beginning than to tick people off, and loose your market and end up in debt
 
My whole view of this is, they said that the costs involved in getting 256mb of ram and 512 mb of storage on the first batch came from their own pockets... Does this mean they intend to let the loss of profit come out of their own pockets, too?

I mean, sure it costs a heck of a lot more per unit for the first batch to have it than the production runs, but over the long run of say, 20,000 to 40,000 units, the loss in profits attributed to more expensive hardware without raising the price can balloon to an incredibly large number. Even a difference of $1 can mean as much as a loss of $10,000 right off the top (as in, all expenses are already paid).

That's where my concern is. Of course, if there is no price change, then that means that Craig and team are better people that we could ever imagine :)
 
Gilrad said:
My whole view of this is, they said that the costs involved in getting 256mb of ram and 512 mb of storage on the first batch came from their own pockets... Does this mean they intend to let the loss of profit come out of their own pockets, too?
As much as Craig has said, the loss of profits is on them.

QUOTE
I mean, sure it costs a heck of a lot more per unit for the first batch to have it than the production runs, but over the long run of say, 20,000 to 40,000 units, the loss in profits attributed to more expensive hardware without raising the price can balloon to an incredibly large number. Even a difference of $1 can mean as much as a loss of $10,000 right off the top (as in, all expenses are already paid).

I am not sure I understand you. In my mind the tooling costs and development (prototypes, shipping, meetings, dev units, etc) are what is making a loss of profit on the first batch.

With a set design and another run of 10,000 or so they should make a profit.

Have you considered that the RAM/NAND module is going to plummet in price? I bet that it will be in mass production within the year.

QUOTE
That's where my concern is. Of course, if there is no price change, then that means that Craig and team are better people that we could ever imagine :)
The price already went up, and with inflation there is no need to raise it more.
 
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What I meant to say is that the difference between the 128mb and 256mb versions of Pandora (during the main production run) make a difference in profits. In the example given, even if the price of memory went so low that the difference between 128mb and 256mb is $1 per unit, that still means a big difference in profits; profits that would have been going straight to the dev team.

In this case, inflation wouldn't matter; keeping the 128mb version would still have yielded more money for the team.
 
All pointless speculation. Can't you just wait until the second batch to find out?
 
I see talk in this thread of CraigX and Co doing this for the community and to ensure long term survival of the Pandora by getting lots of units "out there".

I would just like people to remind themselves that the best way for the Pandora community to be born, grow and prosper is to ensure CraigX and Co make money from it.

The "community" is best served if each individual realises that CraigX can't do this for a loss. He must make a profit from it or else the Pandora community won't exist.

There is no 'moral basis' in saying CraigX must continue the project for the sake of the community. We can't ask CraigX to starve just so that the faceless 'community' is served.

His profit is also our gain.
 
of course we know that craigix needs and deserves some profit out of this, but that doesn't stop him from doing this for the community. If you were out for profit, you wouldn't have added the ram, the money is already in your pocket anyway, he wouldn't have assured that we stay informed about the ups and downs at every point of time.

The project as it was done would not be worth it, if just done for the profit
 
Dingo_aus said:
I see talk in this thread of CraigX and Co doing this for the community and to ensure long term survival of the Pandora by getting lots of units "out there".

I would just like people to remind themselves that the best way for the Pandora community to be born, grow and prosper is to ensure CraigX and Co make money from it.

The "community" is best served if each individual realises that CraigX can't do this for a loss. He must make a profit from it or else the Pandora community won't exist.

There is no 'moral basis' in saying CraigX must continue the project for the sake of the community. We can't ask CraigX to starve just so that the faceless 'community' is served.

His profit is also our gain.
I completely agree. I hope CraigX and Co ultimately make a HUGE profit.
 
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  • We don't know what the costs are now, never mind by the time of the next batch;
  • Nobody knows what currency fluctuations will do to the price;
  • It's pointless speculating right now, although in one of craigix's posts there was a hint the price may change, that could be up, down or stay the same
    craigix said:
    Just confirming the £199.99 price isn't changing, it will always be that for the preorder customers.

    [*]craigix is going to cancel all pre-orders for anybody that can't get his name right. Honest. You've been warned...
 
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