DBrown
Member
Registered: Jan 2001
Location: Midwest
Posts: 232 |
Expansion via modules is not an original idea, and many who have tried it have failed. I'm still a proud owner of two TI-99/4A computers. The first I paid $300ish for. The second I paid $49 for. The second one was so cheap because the product was failing. The product was failing because it needed TI software modules to do anything productive with it. TI kept tight reins on module licensing, and most were $80 to over $100 each. At that time (1980ish), this was simply too much for most home owners to want to pay.
I think the Palm industry perceives it's customer base as business users who are used to paying high prices for their gadgets, since most charge them to their expense accounts. The fact that Handspring is letting Walmart sell their Visors suggests to me that the want the common man to own a Visor. I predict the same thing will happen to the Visor product line as happened to the TI-99/4A if module prices are kept artificially high: They'll die. Of course, it's an open platform, and Handspring strongly encourages other companies to create springboard modules. That's a good step in the right direction.
Of course, If I created a popular module, I'd try and make as much money off of it as I could. It's human nature. What many clever marketers have discovered, though, is that a lower profit margine can increase the volume of sales, often meaning MORE profit in the long run. As more people owned them and showed them to their friends, those friends would go out and buy one. I don't know how many Eyemodules have been sold, but I'd bet that they could quadruple or ten-fold that number if they cut the price in half. I don't know what one costs to manufacture, and it may be more than half the current selling price, but I doubt it.
I suggest anyone that thinks a module is priced more than it is worth, simply NOT buy it. The pricing pattern of most electronic products suggest that either the price will come down, or the product will be improved at the same price. I can wait for either.
Dave
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There is nothing yet made by man that cannot be improved upon.
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