Quote:
Originally Posted by MichaelTS 
The $1500 price point though... I don't see why it can't be done. The real trick is that Emotiva's warranty and quality must be met @ that price and that requires the higher quality caps and components... Whether they can sell the new Pre @ $900 to the installed base and make a profit? They have a lean sales model which is generally 10-20% of the go to market costs of competitive vendors (any on the shelf @ BB for instance).

The $1500 price point though... I don't see why it can't be done. The real trick is that Emotiva's warranty and quality must be met @ that price and that requires the higher quality caps and components... Whether they can sell the new Pre @ $900 to the installed base and make a profit? They have a lean sales model which is generally 10-20% of the go to market costs of competitive vendors (any on the shelf @ BB for instance).
My concern is that trying to get the pre/pro to market within the quoted 9-12 month timeframe and at the $1500 price point will end up leading to significant compromises or delays.
First, there's the issue of new technology and the difficulties of "inventing the wheel": HDMI 1.3 is new for everybody right now, so I don't think that a company can just go out and license a proven platform to save on R&D time/costs. The more new features of the 1.3 specs that are going to be incorporated into the pre/pro, the more cost and time that's going to entail.
Second, I get the impression that Emotiva's a relatively small company (or smaller subsidiary of a larger company), so I have some difficulty imagining that they have the manpower or budget to develop a new platform this quickly. I realize that they've already started the process, but even the big manufacturers (Denon, Yamaha, Pioneer, etc.) aren't going to have 1.3 products for several more months. And when everyone's trying to buy the same chips to implement HDMI, it's hard to imagine a smaller company being able to outbid/outbuy the big guys.
Third, with all the development and component costs, how much of a profit will Emotiva get from their pre/pro? They will need relative high margins to make their money, because they're not likely to get it by volume of sales. Unfortunately, they also don't have the name recognition of more established brands (Anthem, Rotel, etc.). And of course, there's going to be the cost of paying for returns/ exchanges. And what about support down the road? How much money will there be to continue refining the product, testing and releasing the inevitable firmware updates, etc. Their free shipping and 30-day trials are great for the consumers, but they eat away at the bottom line ...
I applaud Emotiva for their desire to bring high-end products to a wider audience by selling them at "unthinkable" price points. I'm just skeptical that it can be done by a small company, with new technology, in this short timeframe, for this little cost to the end user. In my mind, something's gotta give.
















as well as one familiar with technology go to market demands.





