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"We Listened" - Commodore Reduces The Price Of Its Forthcoming Callback 8020 'Dumbphone'
(www.timeextension.com)
This is a most excellent place for technology news and articles.
I work in product management, this was not a marketing ploy.
Supplies are expensive now. They are cutting into their margin considerably and probably did find some slightly cheaper components. Maybe they cut a better deal with the suppliers.
Either way, they are playing smart by listening to the market on an untested product in a new product category of “semi-smart” phones. This could signal a comeback of this type of product but only if they pave the way with affordability and usability.
I hope this does succeed for them because we need more companies taking risks in today’s market. Everything is so bland right now.
I'm on the Engineering side and $400 buys you parts for A LOT more phone than that, especially with that screen size.
Are they planning on having the phones individually hand-assembled by Degree holding Electronics Engineers in the US - hence the manpower costs are insane - or is it a situation of putting a jet engine on a small car (tons of memory and a big processor on something with a far too small screen to be useful for most things, especially gaming)?
I bet the price bares no relation to the actual product manufacturing costs.
Yes, but also, ROI on development and marketing and research costs etc. This is a niche product with no clear distribution channel. While cost to produce based on parts alone is low, what about procurement, planning, distribution, marketing, development etc? Everyone needs to make money to get the product off the ground.
Plus this is a completely unproven product (generally) static landscape. Price is basically dictated on how they can penetrate a market, gain market share, and still make profit after all the work that goes into making that a reality.
We don't need companies taking risks for the sake of risks though. We need companies that actually have good ideas and can produce products. This isn't much better than a Kickstarter. And you probably know incredibly well, no one is changing or going to succeed in the very bloated cell phone market.
You may be correct but that just makes them look dumb for trying to do this in the first place. Why? Make some mechanical keyboards, retro looking monitors or other peripherals, whatever might actually make sense for the Commodore brand and style. Not a phone.