lanierb;354775 Wrote: 
> One reason they don't do it might be that it could undercut controller
> sales.  Not sure if that's it, but it's one reason for Logitech not to
> do it.  
> 

Yes, it's inevitably going to change the sales demographic for Sonos.
People are likely to buy less controllers and also less of the bundles
containing controllers. Sales of CR100 controllers will undoubtedly
drop.

But this is a 4 year old product and Sonos have had very good mileage
out of it. All the R&D required to develop that original product was
huge. Back in 2004 the components within it were extremely expensive.
Prices of LCD screens, li-ion batteries and wifi components may have
dropped since, but back then they cost a fortune. Take off the cost of
shipping, packaging, dealer margins and tax off the price and it's
clear that it must have taken a considerable time for Sonos to see
return on the investment required in the controller development.

Things moved on considerably before the launch of the SB controller,
meaning it could be produced cheaper and some key components, like the
LCD display, are of a higher quality that the Sonos CR100 for a lower
retail price. Logitech also have the advantage of their extensive
consumer electronics manufacturing background and production facilities
in the far east.

But the SB controller is still new and I doubt any business model had
it producing a true return on investment in the 6 months or so since
it's launch this year. They will need to shift more units of this
product before introducing a free option for iPhone but, saying that, I
doubt it will be that long until they do as they can't afford to be that
far behind in the marketplace.


-- 
jaffacake

Ben - eco conscious techie and author of Jaffa's Green Blog -
http://www.jaffacake.net
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