BOM (Bill of Materials) on the new controller is likely in the $50 (or
sub) neighborhood if I had to make an educated guess based on the costs
of past Logitech Harmony products (shhh, inside source).

That price fits well enough with an MSRP of $299 if the product were
going to be carried through distribution and then retail, with Logitech
selling it in volume at about $100.

The product is certainly high priced, but this has nothing to do with
manufacturing costs at the consumer level. Most consumers have no idea
how little it costs to produce most of the crap they buy. The value
proposition is based on personal desires/requirements and the existing
market for that (or similar) class of products.

The controller isn't a universal remote control, so it's unfair to
compare to those products even though their BOMs may be similar. What a
BOM doesn't include is the engineering effort required to design both
the hardware (usually the simplest part) and the software. Yes, it's
nice to have an open product, but this is an area where Logitech is
saving a bundle by not providing an even more robust feature set right
out of the box.

Since this is a designed and marketed as proprietary controller, albeit
using some pretty standard and wide reaching hardware components, it
must be compared against other devices that would fit into similar
systems. Namely the SONOS controller.

The Slim product line is in a bit of a unique quandary because it can
also be controlled by a number of other products in a handheld form
factor, such as the Nikia devices and iPod Touch product.

Back to price... Even if I knew for a fact the BOM was $50, I'd still
want one. And will likely still get one any pay $300 if I have to. With
that comes a level of expectation of course. Mainly related to fitness
and polish.

The drawback to using any other "generic" device at this time is having
to use a plain web skin which is anything but truly interactive. The
whole game changes with a custom application running on one of these
other devices, but as a consumer, one generally wants a finished
product.  This is where the Logitech products are being aimed. 

A lot of potential revenue has ben left on the table over these past
years with the Slim lineup. Excellent products, excellent software, but
the whole ball of wax just wasn't wrapped in a consumer-friendly
package.  I've said it before, this is why products like SONOS and
Olive have done so well, despite their very high prices.

Now how about a discount for loyal forum participants? :)


-- 
MelonMonkey

Bruno
*'Twisted Melon - Fine Mac OS Software' (http://twistedmelon.com) |
'mira - Personal Control for your Apple Remote'
(http://twistedmelon.com)*
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View this thread: http://forums.slimdevices.com/showthread.php?t=41805

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