I was just contemplating the this article, particularly the bit around phones. The article suggest that for every phone sold, it could be tens (note the “s”) of cents in royalties. A quick google search suggests that in 2019 there were 1.52 billion smart phones sold. Obviously some of these are older models, but a large chunk would be new models.
If we are to believe our board (who are industry experts and leaders in this field) then our product, which is almost ready to go into production is 1000 times faster and uses 1000 times less power than existing memory. More importantly it uses standard material and to quote from the last quarterly work is being completed to “ensure the module is more competitive than existing technologies”.
I know it takes time to incorporate new technology in products and Coby has talked about the long lead times in this business. But then I reflected how this board does not focus just on what they are doing now or what they are doing next, their experience and abilities allows them to see bottlenecks and roadblocks years in advance, and take steps to address them. In January 2019 Weebit engaged with Silvaco to develop tools that allow computer aided design for our product. Was the decision to do this in January 2019 taken to avoid a delay in 2021 in the uptake of our reram? Is it possible that smartphone designers have been developing their products for some time with our product in mind, reducing the lead time required now? I don’t know, and it is speculation, but the board have a plan and are very switched on.
If you were in business of selling phones and had the option to release a product at similar cost, with significant benefits in storage, speed and battery life that would be a no brainer right? Pick a percentage of the 1.52 billion phones sold, multiply it by the cents you think are reasonable per device, with the article suggesting 20 cents would be the smallest and the figure you come up with is pure profit for Weebit.
Maybe it’s not next year, but sometime soon you would think our product would be the norm. I know people will say you can’t get that much market share, but you don’t have the best in field all sit on one board for a small share. If you take 50% of the phone sales and use 20 cents as your royalty, that still gives a profit of $152 million.
The numbers are staggering and what if its 30 cents or 40 cents and what if they gain more than 50% share. There are a lot of what ifs, but these guys are serious about what they are doing. Keep in mind this is just for phones as well, the company says every device is a target!
The road is going to be bumpy over the next short while, but the end of the journey is worth hanging on for in my opinion.
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