adamslim;148192 Wrote: > The Squeezebox is always gone to be the one that makes money - it's > actually somewhat perverse that SD have gone from mass-market to > upmarket. One would normally expect a high-end 'proof of concept' > first, followed by a mass-market product (often better than the > original), and then, maybe, a new upmarket product. > > I don't want to do SD down, but theirs is a new market, and there are > several players who will enter it when it becomes more mainstream. > They are probably making OK profits now, but they could easily collapse > in the future to a large entrant with serious resources. > > Getting the resources (of Logitech) on board is the best way to ensure > that they don't get pushed out of the market that they have created. I > assume that they have also looked at the private equity route, and that > they decided that their future was better with a product partner, not > just a financial backer. > > Is $20m cheap? If Arcam bring out a branded audiophile > Transporter-beater in a year, and Sony a mass-market SB-beater, SD's > margins will be slim indeed. For $20m, with a risky future, I'd want > them to be making $2-3m profit this year or I wouldn't even look at > their business plan. I don't know how many SBs are being sold, but I > doubt their profits are much above that. > > Even if they are making that, this strategic partnership is probably > the best way to make sure of the future. It takes a lot to take a > company from an edgy, techie product to real mainstream, and that is > what is required for SD - it has the SB, which can do it, but you need > real resource to take it there. > > So for me, it's hats off to Sean et al. I think that he has recognised > that they would rather have a financially secure future, with a smaller > part of something potentially huge, than to keep on with a real chance > of being totally squashed by a large player. It's pragmatism over > greed, and I respect it from a business perspective. > > Yes I share people's concerns over branding and continued product > quality, but let's let time tell. I still feel very positive about > SD's products' futures. > > Adam
Good Post Adam :) -- Deaf Cat ------------------------------------------------------------------------ Deaf Cat's Profile: http://forums.slimdevices.com/member.php?userid=515 View this thread: http://forums.slimdevices.com/showthread.php?t=28862 _______________________________________________ audiophiles mailing list [email protected] http://lists.slimdevices.com/lists/listinfo/audiophiles
