around Christmas this product
will sell, how many have no idea
lets say they target supply @
200k units with a gross margin
of $200 (which is not going to happen)
that's 80mill in total revenue
and around 40 mill before added costs
This looks good on face value,
however its unlikely
production could reach 20k/mth let
alone more if quality controls inplace.
That's realistic. So only 140k
units can be produced before Xmas.
To meet supply shortfall our friends in China,
"the competiton" make near identical copies
for far less
the added costs for advertising,
shelf life, transport, logistics,
free cash flow, insurance, debt repayments
will further dent the bottom line & or provide
further dilution of sh
Once original frenzy/fad is over,
iot will now have two dormant products
which have been over produced and
need paying for. At this time in the
cycle, prices drop as competitors
produce copies. leaving
no margin
Anyway that's what finance media
will focus on
IOT Price at posting:
9.8¢ Sentiment: Sell Disclosure: Not Held
