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by asoneth
365 days ago
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Is it pound foolish, or just a rational business decision? Let's say they ship 100k laptops per year. Let's say they could meaningfully improve battery life with a team of half-dozen excellent software engineers, which would cost on the order of a few million a year. For the sake of argument, let's say ~$3M/yr. That increases the price per laptop by ~$30 on average. That's a premium I'd pay for improved efficiency, but judging by the comments here and elsewhere, the premium they're already charging above the raw component prices seems to be at the upper end of what most people are willing to pay. It's fiendishly difficult to become the next Apple, Tesla, Nintendo, or Valve with thick enough margins on your hardware (or services) to afford excellent software engineering teams, so it makes sense that so few hardware companies attempt it, and many who try eventually give up. |
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Framework doesn't have to spend enough to be the next Apple (nor do they have the resources to be), they just need to spend enough to not be so desperately far behind Dell.
The explanation makes sense in isolation, it just seems like a local maxima if you zoom out.