Current drone consumer market worth approx. 2billion... That's 2000 million... Of that the vast majority will go to big names and for what I'd call real drones... Let's say pure selfie drones will be worth 10% of this market... And I think this is being generous, considering every drone has a solid camera these days as videoing and photography is predominately what they're used for.
So 10% of 2billion is: $200 000 000... Let's say IOT do really well and grab 20% of this... That's $40million at a RRP level... The retailers buy these drones for 50% of retail price... That's $20million per year... The distributor takes 10% of this... That takes it down to approx. $18million per year...
I know parrot drones operate on about a 12% margin last time I checked... That's: $1.2million dollars gross profit... Pay tax... And becomes less...
This is relying on getting 20% of the selfie drone market (assuming the market is this big).
I can see why many have and are taking profits... It's been a great run. I know many believe share price should be much higher... But it has now retraced from 18c back to below 10c... That's significant... And unless IOT start living up to expectations, there could be significant downside.
IOT Price at posting:
9.7¢ Sentiment: None Disclosure: Not Held
