Agree Duds, looks like they have evaluated the market, and the...

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15/07/21

10:27

Post #: 54517445
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Originally posted by YourDudliness ↑

I'm hypothesising, but I reckon the price hike is to reflect that the HP buds are a direct competitor to the Airpods Pro as a premium hearable for the Microsoft and Android platforms. The HP earbuds fully operate on the iOS platform but Airpods are linked to Apple instruments and as such don't have the same integrated functionality to the other platforms mentioned which is great for us.

Seems Apple's ecosystem is designed to mainly integrate into their own operating system and that's why you have a big divide between iOS disciples and the rest of the mobile/computer/smart TV community (the vast majority in other words who use Android and Microsoft). Clearly Apple are price setters so if you're selling a product that betters or equates with their product why would you price set below that level?...you'd risk "cheapening" your product. That might be your strategy if there was a power disparity in say a small Co vs a Big Co...but here we are talking major multinationals and so in the Microsoft/Android space such power disparity doesn't exist as between HP and Apple.

The other benefit to HP is it gives them a lot of scope to discount, as can be seen with their computer range where you see big discounts come up from time to time on various computers.

As to whether NUH will receive "extra" as an OEM vendor...I doubt that...aim of the game for us is to sell volume in a market that has proved difficult to penetrate due to Co's small size and so limited economic moat to splash on marketing as a relative minnow. We've packed a lot of punch for our marketing spends so far (an amazing amount) but this collaboration with HP takes us to a whole other level.

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Agree Duds, looks like they have evaluated the market, and the feature sets across different buds, and decided to go head to head with Apple, USD$50 isn't going to change their sales profile too much, and why not make the extra margin!

I'm sure we'd all be happy with 1-2% of Apples sales, but something tells me HP will get a much bigger market share within 12 months, assuming we can meet the demand from a production perspective.

If we get to 5%+ then we'll all be off to TP's $1 party

GLTA

NUH Price at posting: 4.3¢ Sentiment: Buy Disclosure: Held
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