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Original Message
A low priced unit doesn't leave a lot of money in the business plan for customer support.
Posted by Dynobot on July 6, 2012 at 13:47:23:
Sure doesn't but thats the price you pay to enter a hot market. Slim profit margins in exchange for a slice of the market share.
I think this little thingy will have robust sales world-wide due to its price point and because it can ride off the already good reputaion of the Sabre Dac chip.
An example of this can be seen with Google's Nexus 7 and the Kindle Fire. Both of which have slim to no profit margins, but whos only purpose is to grab some market share and increase overall profit and exposure of their product base.
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From News:
What TechInsights has figured is that the production cost on the Nexus 7 is $184 USD per tablet. That’s roughly a $15 USD profit per device for Google and ASUS. Amazon noted earlier this year that they were basically losing money on each tablet just so they could send out a machine that would be a perfect home for their media – and of course this model did indeed work for a while, the Kindle Fire being second only to the iPad earlier this year as well