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Leaked Pics of CrunchPad Elicit Progress Update
TechCrunch has released a few more technical details, pictures, and general comments about their CrunchPad project as a recent accidental leak saw a new round of images posted to the web. It seems that the tablet has continued to grow and evolve with the help of an Intel Atom chip (as opposed to the Via chip previously used), new software from Fusion Garage, and a bottom-up Linux install. "I wanted something I couldn't buy, and found people who said it could be built for a lot less than I imagined. The goal — a very thin and light touch screen computer, sans physical keyboard, that has no hard drive and boots directly to a browser to surf the web. The operating system exists solely to handle the hardware drivers and run the browser and associated applications. That's it."
Read a little further along the article for your answer;
Price? it can be built for less than $250, including packaging. Add in fixed costs and other stuff you have to deal with (like returns), and you can sell it for $300 and probably not go out of business.
I'd like to see that business plan. I suspect if you build it at 250$ the least you could sell it for and not go out of business is 500$. That might be normal.
83% cost of manufacture? At a price point of a few hundred dollars, it is almost impossible to break even, much less turn a profit.
You could survive 80%+ cost of manufacture if you had a very low price point (1$ or less), had no support or return costs, and very low advertising and could sell millions or billions of them. Even then you would want to get down to 50% or less.
The thing is, this isn't a normal business venture. He mostly wants it to be built because he wants one himself. He's not motivated by profit, but desire to realize the product. A lot of the initial work was done openly by volunteers which drastically cut engineering costs. I don't think there's going to be much of an advertising budget.
My guess is that he's done the math and probably has a better idea of what he can sell it for and not go out of business. Note that: NOT GO OUT OF BUSINESS. Not become a millionaire. Not become a business tycoon. Simply stay afloat. I think that's all he really wants.