I think these are good questions Scott. While it’s always hard to know without spending much more time with the product, team, business metrical, BOM cost, etc., I have a deeply-held philosophy that products resemble the constraints of the company that builds them. If you have unbridled constraints (time, cost, people, etc) it’s hard to avoid falling…
The hardware is most assuredly not a major contributor to their bottom line, but the full product most definitely is (or at least will be). One thing is clear about companies that figure out how to get into to the home effectively: the data and control is wildly valuable, I’d argue one of the most valuable things there is in tech. That was the point of that line. Hope that makes more sense!
I appreciate different perspectives but a lot of people would find this opinion both deeply insulting of their work and not backed up by data from a long list of major technical leaps that occur outside the traditional military-industrial complex. I would suggest doing a bit more reading/research/discussion if this is something you feel strongly about.
Very hard to say generally, it just depends on the actual costs and revenue. Usually, recurring revenue connected hardware products have significantly longer lifetimes and higher margin but it really depends.
I don’t disagree but by definition, that’s over engineering. Engineering is about finding the RIGHT solution (on a bunch of axes: cost, quality, manufacturability, reliability, etc). If something is over engineered it’s more than necessary in one or many of those characteristics. A perfect solution for industural equipment is often a very imperfect solution for consumer.
An excellent perspective for sure. I believe it’s really both pillars being overly expensive that create the primary dischord with consumers. Usually hardware businesses optimize for one of the other (low margins on machine, high on pods, or vice versa). Juicero seems to not follow this creedance which creates a major strategic problem for the…
Struck me as wrong as well, but markings in multiple places indicated high voltage DC and markings on the motor housing clearly say “5A”. Possible it’s wrong but didn’t have time to throw the scope on it to get a definitive reading.
Sure. High-tech (or low-tech or any tech) startups still slot into similar business models. Finsix isn’t a connected hardware company (they don’t have any software and no recurring revenue). They have a traditional CE business model which is typically 30–50 points of gross margin at a single point of sale. Hope that helps!