I think UBNT approach is very smart - sell the best product they can make as inexpensively as they can. But because it's built in China and UBNT doesn't have the strength of say an Apple Computer to control shenanigans there's a chance they're basically just handing their inner most secrets and details over to the competition, not meaning existing competitors in the market but rather a more nebulous competition, some individual or company which will see an opportunity to start selling a similar product or even worse, selling a counterfeit version of the exact same product.
All companies are in a race to the bottom for price. UBNT is well positioned to do well in that race. What I fear most will happen is that UBNT will over-diversify and spread themselves too thin. But since everything they've came out with so far is pretty kick-ass I think they'll do well. Though the handwriting will be on the wall when we start seeing UBNT gear with "As Seen on TV!" on the package. Greg On Aug 10, 2012, at 11:59 AM, Paolo Di Francesco <paolo.difrance...@level7.it> wrote: >> >> It's interesting that the stock tanked after they basically met or exceeded >> street expectations. >> > > Hi Greg > > in some cases, not saying this is the case, it can happen that the more > success has a product the faster the company will be out of the market. > > This can happen in situations where the company has a product that is > destroying the market for everybody, itself too. So if a "market killer" > (i.e. a product/service that kills the market) has an unexpected success it > can also mean the end of the company. > > I will do an example: let's say that for the nature of the market, the number > of sold items will be 1 million. All companies are selling at 100$ then one > company steps in and sells at 10$. The market goes from 100millions to 10 > millions so basically if your company can survive with only 10 millions this > year that will mean it's nice, but what about next year? If the product is > very good and there is no new cool feature next year in the next product, > nobody will buy it and next year the market will be around zero. No margin to > survive next year in this market > > Well I hope that is not the case for UBNT let's wait and see :) > > just my 2 Euro cents > Paolo > > > > -- > > > Ing. Paolo Di Francesco > > Level7 s.r.l. unipersonale > > Sede operativa: Largo Montalto, 5 - 90144 Palermo > > C.F. e P.IVA 05940050825 > Fax : +39-091-8772072 > assistenza: (+39) 091-8776432 > web: http://www.level7.it > > > _______________________________________________ Wireless mailing list Wireless@wispa.org http://lists.wispa.org/mailman/listinfo/wireless
