Discussion Forums > Technology
$32 million Crowd Funding for Android/Ubuntu phone
kitamesume:
no, limited edition phones with the same price-point would have a more massive specs than Edge on top of limited production runs. look at Nvidia Titan as an example.
if we look at Nexus4, which has marginal profits (10%~20%) just to cover ROI and replacement units, their $399 is comparable to Edge minus 2GB ram and 112GB storage, this means chasing after Edge's paper specs would only hit an approximate of $550 (+$100 for 112GB more storage, +$30 for 2GB more ram, +$20 for other features ).
zherok:
The Nexus4 has sold 25 times more units than the run they're planning with the Edge though. Not remotely as limited a unit.
kitamesume:
i was explaining their profit margins were acceptable while having comparable specs to Edge, even if it were a limited edition phone i doubt having 70% of the price as pure premium is even acceptable.
also, Nexus4 did have a batch run comparable to Edge, if they limited it to only two batches then it would've been the same as Edge. you're looking at a phone from 2012 to boot.
zherok:
The limited Nexus batch wasn't the end of the run though.
There's the possibility they're rolling R&D costs into the price of the phone too. And for a limited run you're never getting that investment back any other way but through the phone.
In any case I doubt it'll matter whether the thing's legitimately priced or not. There's almost certainly not 40,000 units worth of interest in it. It's a niche appeal to begin with, and whether greed, incompetence, or some other issue has the price as high as it is it's pretty unlikely to hit the goal at this rate.
kitamesume:
demand broke in too much so it got continued even though the limited batch was already over.
R&D cost of what? ubuntu? the phone? are they even developing hardware?
google nexus's R&D is through android development, most R&D of other manufacturers were on ARM cortex research and design.
not to mention most of the manufacturers are developing their own set of features and perks, Sony = bravia engine and water-proofing, samsung = exynos, LG = low-cost screens.
i dont see anything they'd even be pouring R&D on, other than developing the phone's design and structure, which isn't even worth 50%~70% of premium.
thats why i've been saying it isn't worth much at it's target premium.
one last time, my hypotesis of why they're charging such a premium is to jumpstart their own fabrication line.
e.g. they're trying to build their own factory from scratch without investing their own pocket money.
then the $32M makes sense, no?
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