Ann: Nuheara Pre-Order Campaign Exceeds AUD$1,000,000-NUH.AX, page-125

I think you guys are right in that the distribution will be the key of unlocking that 10cents barrier. I think by the end of the year, they could set up a online store (after IGG has expired) to reach customers that they usually couldn't via traditional distribution channels.

The U.S would obviously be the main market I think they will be looking to set up distribution networks. According to similarweb.com - 51.24% of visitors to the nuheara.com website comes from U.S.A, 13.46% from Australia and the remainder % from various other countries. They should try to gain some traction from the Asian market as that would be a very large market to capitalise on.

With the earphone industry, it has one of the highest mark ups in any industry due to the size and parts used. The production cost of the IQbuds would be less than a haircut as i think most of the cost associated would be for R&D, marketing & warehousing.

An example of how much earphones cost to produce is in this article of Beats by Dre which uses much larger parts than the IQbuds.

http://www.dailymail.co.uk/news/article-3001842/Dre-Beats-headphones-cost-14-make.html

"Headphone designers estimate 'the cost of making a fancy headset is as low as $14', the New York Times reported"

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