I'm Confused By Some Informations


I do wonder what exactly Craig included in the manufacture cost of each Pandora to end up with the 20-30 USD loss. He have said that the costs have gone up for batch 2 so I really do wonder what the price will end up at. There were a lot of high one-time costs in the development of the Pandora that will not have to be paid again, also costs for things like storage should be lower.

The initial 330 USD price was calculated long before they knew the exact cost of the final units. I believe they also wanted to keep a low price for first batchers as a thank you for trusting them with our money.

There are two catch-22 problems with the Pandora. They could lower the price to attract more customers but then they would have to make up for that cost with software sales (the appstore). They won't make a lot of money on software unless there's a lot of users. They also need a lot of users willing to buy software to be able to attract devs willing to develop or port to the Pandora. This is one of the big things that separates OP from the big companies with tons of money. They can't take a huge loss in hardware sales and pour millions into marketing.

That post turned out longer then intended :)
 
In my opinion the first priority should be to establish Open Pandora Limited as a company. The price has to stay competitive and they should invest a significant amount of money in software development. The general rule says that you break even after five years and then the fun begins, if you still exist as a company that is.
 
If Open Pandora Limited becomes a true company, I'll be glad to invest a bunch of € € in it.
I would not care about dividend as long as they keep producing Pandora and accessories :p
:pandora2ut4: all the way!
 
$25 * 4'000 Pandoras = $100'000 loss on first batch. This is without financial backing or loans. I don't know if they include Pandoras handed out for free (to devs and press etc) into the cost figures, they are making less then $330 * 4'000 from the sales. I wonder what kind of profit they are making from the accessories.

The closest competition to the Pandora (as I see it) are netbooks, tablets and smartphones. I think the Pandora would have a competitive pricing even at $349, there is nothing else like it out there. If people understand what they get for the price, and the Pandora is something they want. To stay at that price they need competitive hardware of course.

The more I look at it the more I see the need for upgraded hardware (OMAP4) with the same case, keymat etc. only to attract more customers. I doubt many existing owners would upgrade unless they plan to give away or sell their first Pandora, or they have abused it and need a replacement.
 
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