I think some of us are underestimating how substantial the...

I think some of us are underestimating how substantial the revenue potential of the app subscription fees will be long term.

I've learned alot about the app industry through countless hours of research on a stock of mine named animoca brands (AB1) (remember that name, you will see plenty from them in years to come).

It is my understanding that the app store demands commissions on sales (including in app purchases and subscription fees in the vicinity of 30%, sounds horrendous.

I also have a great deal of personal experience in business myself and have a general knowledge of margins required in manufacturing and recurring services. (Although none in the tech or mobile app industry, shoot me down if you like). So with a little sniff of a hunch I would expect the $6 sub fees to be generally split 3 ways.

1/3 to app store
1/3 maintenance and operational costs
1/3 gross profit

The operational costs would be split and split and split again with mass volume and may end up looking more like 50/50 total cost/gross profits down the track.

So with the average of $3.60 / unit per month.
Equating to $1.20-$1.80 gross profit.

With a lifespan of 4- 5 yrs? Remember this will likely carry on longer for many watches as 2nd hand units will still attract the app fees.

So the numbers you can calculate from this suggest that the initial profit from sales will likely be in excess of double the suggested numbers being thrown around here over the life of each unit.

This is before we add in extras like 1 off in app purchases for upgrades or premium subscriptions for value added services (i'd be very surprised if this isn't being investigated right now).

Having said this, I do agree that we have reached a stand still on sp for the time being.

Reasons:
The market has already priced in the JB deal and the sale of 23,000 watches, not until we see something to better this will the market react again in such a way.

Also, MWR are maybe one of the tightest sealed ships I have come across, we don't get big fancy gunna do announcements. They wait for results before they gloat about it (which is a real breath of fresh air on the asx) but traders and retail investors get bored quickly, JB has exclusivity until Feb 19, so there's unlikely to be anymore announcements on new distribution deals before then. The next financial reports are a traders lifetime away. The next leg up should be a cracker but Its not coming this month or even next month
IMO.