Hi Tech, a very well thought out post, and extremely valid...
Would like to add as follows:
1) healthcare and industry are the 2 frontrunners for IoT deployment • both depend heavily on sensors to deliver vital data - sensors are the key early stage IoT devices • mass market consumer engagement will hopefully kick in, in the not-too-distant future
We don't really know which industries will be the frontrunners…there are so many to choose from. In todays somewhat subdued market, where the emphasis is in cost saving, i would think that industrial would be more a front runner. Especially power saving (it appears that the power companies are holding the rest of industry to ransom)
However saying this, the ageing population is a massive growth area, and a serious issue for governments worldwide. Anything that can be done to make this whole area more cost effective will be welcomed. Although governments like to farm as much as possible out to the private sector, there will still be government contrail to a certain extend…it all comes down to private companies 'winning tenders'
Mass market consumer engagement - very good wording sir !
However i do not believe that will become core business for at least a decade. Reason: the vast majority of people have some aversion interconnected devices…..possibly that they do not understand the benefit, and (its working ok now so why fix it attitude) - or that is just too hard.
I myself use streaming devices for media around the house…..'er indoors doesn't really understand it, and uses the radio instead…..i often make the point, why listen to the radio when you can listen to what you want to…….so this market need to be harpooned to a younger generation…….however most of the younger generation are just bring to get a leg into the property markets and its tough for them. Add ons like interconnected houses are not a priority….this is a worldwide phenomenon.
However i think that targeting new growth areas….and specifically i am thinking of Prime Minister Modi's 'smart city' growth plan…..so this an extremely good starting place is India. (Also believe that India will be the world economic powerhouse within 20 years)
2) XPE have now created deep collaborations into both of these sectors • via JCT, data centres, digital keys...
And much more……if you read through the company announcement there are certainly other areas, the digital key for instance is only part of a bigger picture.
Expecting more and more and more….to come.
There are probably many other small/medium companies that are involved in areas that we have not considered…..and these guys will be looking for an edge….i have full confidence in management to be able to sort the wheat from the chaff - and secure many many other JCT like deals.
3) whether to purchase a collaborator or not depends on multiple factors • their willingness to be bought / their revenue and profit position / their roadmap to growth...their ability to showcase Xped features and benefits in a powerful way • I can't say what exactly makes JCT a definite purchase - but I see why XPE would consider a purchase
This is more or less answered in last paragraph of previous.
4) the main game is to continue to create pressure on the chip companies to start production with ADRC • every deal / every customer / every $ - that ADRC is engaged with adds to that pressure
That is an extremely astute observation: it is holding a flag up to the big boys and asking who is first to blink !!!!!!
5) each ADRC deployment is another bet on success • in the short term, different sectors are moving at different speeds with regard to IoT - its essential to put multiple horses into the IoT race
Agree entirely, but not an IOT race but IOT race card!
6) in the long term maybe someone else gets to be the standard • so we must try to achieve a significant business in the event we don't win all
To win, does not mean the best….
but to win the following help:
1/first mover advantage
2/ backing from serious players (so to change horses midstream is uncomfortable)
3/ being best helps
4/ be visionary helps more
5/to make it so difficult for the opposition to move in the space (and developing in multiple spaces is crucial)
- SO TECH…Just some meat to your fabulous skeleton
Ports
XPE Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
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