On Dec 6, 7:05 pm, "Rich Buggy" <[EMAIL PROTECTED]> wrote:
> I think you'll find there is a simpler explanation for the price
> increase. Most international contracts are in US dollars. Six months
> ago 1 Australian dollar was almost 1 US dollar. Today it takes 1.50
> Australian dollars to buy 1 US dollar.

Kogan didn't announce the phone 6 months ago.  The exchange rate has
changed very little since the announcement of the $199 price.

Ruslan Kogan was called out on this fact in his blog and acknowledged
the exchange rate and global financial crisis can not be blamed for
everything.  That was when he mentioned the R&D cost blow out.  I'm
sure the economic climate contributed to some of the price rise but I
also think Kogan underestimated the difficulty of bringing an Android
device to market.  Initially they announced a keyboardless device, I'm
sure they burnt some cash realising how difficult it would be to
develop a usable software keyboard.  I'm also sure they didn't
anticipate all the missing functionality that Eric has outlined.
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