While all this is true, the process of moving from a prototype into production is a more or less solved problem. For example, there are a lot of companies that one can outsource the actual pick-and-place, assembly and packing to. The same goes for support and sales, I'd imagine. If the VC money is in place, this part should just be turning the crank.
By your logic, you could have outsourced the design as well.
Re:TechCrunch Tablet Update: Prototype B
by Prrometheus on Tuesday January 20, 2009 @12:06PM
(#441906)
Design is less of a commodity.
Re:TechCrunch Tablet Update: Prototype B
by gravitycop on Monday January 19, 2009 @03:52PM
(#440878)
More:
Documentation has to be written. Then there are legal fees, and perhaps an entire permanent legal department. Regulatory fees must be paid. Taxes must be paid. Tooling costs. Electricity costs. Insurance costs. Advertising costs.
It's an entirely different ballgame to put a prototype into production.
Someone has to print out boards, solder stuff on the boards, burn an OS on a drive, order parts from suppliers, and have a rigerous testing program.
Then you need to package up these puppies in pretty boxes and get them shipped out.
Oh, don't forget a crew of folks to man phones and deal with new orders and support issues. Don't forget the salespeople you'll need to get these into the hands of big suppliers.
Prototypes ain't hard. (More accurately: they tend to be inexpensive and you can fit everything you need into your two-car garage.) It's the business model that wraps around it that gets expensive and time-consuming.
Best of luck though to the crew. I like to see new competitors. It pushes everyone's game up.