Just read on Dronelife.com an article from @MarketWatch. Citing heavy competition 3DR shifting focus from the consumer market to commercial platforms. Sounds like the consumer SOLO failed. IDK
Nope, from what I read it almost did too well - flooding the market forcing DJI, Yuneec and others to lower prices drastically.Just read on Dronelife.com an article from @MarketWatch. Citing heavy competition 3DR shifting focus from the consumer market to commercial platforms. Sounds like the consumer SOLO failed. IDK
Fully agree to what you say.Well, business is business.
Consumers drone market is now majority controlled by DJI, DJI can throw US$100mil down the drain and still smile and they won't collapse.
If 3DR is indeed only $99mil funded :
"The company is one of the better funded among a growing number of drone startups, and has raised a total of $99 million in four funding rounds. "
That is a small amount of funds to battle DJI. DJI knows how much it cost to make a Solo, all they got to do is sell Phantom 3 Adv and Pro at a price point where 3DR can't make profit on Solo if 3DR is to do a price cut ........., then bye bye majority of consumer market profit for Solo.
What separate Solo from DJI Phantom is , Solo is made from zero for movie making platform and at the hands of professionals it is a powerful low cost tool with fast learning curve.
Me being a dumb drone pilot is happy Solo exist to speed up my goal, which is hopefully take better aerial footage while needing the least piloting skill
DJI on the other hand target every sector, and I still believe that the flying-for-fun sector is still way much bigger than true video/movie making crowd. One can take great aerial footage but not everyone can make a beautiful 3 minute video worth watching while it does include some portion being aerial footage and land footage. Aerial footage looks cool and awesome in 2012 but it is boring today, unless it has really spectacular content to watch.
The more spectacular the aerial video one manage to capture, the more one EVENTUALLY will not want to share publicly, this is common sense, it takes $$ and time to capture those difficult or spectacular shoots, so videos like this goes into commercial sector as stock footage or a paid job. Someting to get payback or it is the intention of the videographer that commercial sector is what they are after. These specialized artists probably are not even 5% of a Solo or DJI market. How would a drone company survive selling a drone to such niche market segment if the price point is consumer price at US$1,000 with gimbal ( no camera ) ?
From business point of view, DJI would be more efficient I would guess.
Not only it has economy of scale, it is based in China and a Chinese company and production of all these drones thingy is plenty in China, not Mexico. The speed of developing something new or making something new at production stage, a US based company can't compete with the Chinese with production backyard in China or even a US company with supporting Chinese suppliers involved. Solo label stated MADE IN CHINA.
Whatever DJI buy at 100,000 pcs from their suppliers, 3DR can only buy at best 7,000 pcs or less, that alone means DJI pay less per unit and will be prioritized by suplliers to actually make the product for DJI first and other brands can wait in line. Probably that is what happen to Solo's delayed gimbal...money and quantity talks. Perhaps DJI has enough sales volume to make its own mini factory for their gimbal.
DJI cut price is not because Solo sold "plenty" I don't believe that, what DJI did is the same as what Ronald Reagan did to Russia during the cold war........ tell the Saudis to reduce oil price and see who got more money in the end. That Reagan move made Russia see Chapter 11.
Cut 3DR Solo's profit by slashing drone benchmark price, the Phantom 3 Professional at US$999 where one get free 4K camera + gimbal + superior range Lightbridge and 3DR sales will eventually shrink. As it is now 3DR Solo is like US$400 more money apple to apple compared to P3 Pro due to no freebie 4K camera on Solo, but it is not a pure US$400 more expensive, because Solo Smart Shots capability has $$ value. Since 95% of drone consumers are not video artists, most will go for P3 Pro probably. This is what DJI hope to happen and it will happen.
The difficult part for 3DR in this drone business is , 3DR need to fight a rich Chinese giant, established, started in 2006 where 3DR started in 2007??. The way things usually work ( except iPhone for the time being ) , developed country brands slowly eroded by developing country brands where labor rate is much lower and labor union has no "teeth/power". Whatever extra cost a brand have to endure being manufactured in a developed nation is extra cost, another downside. Now its the opposite, a developed nation brand trying to fight a product coming from a developing nation on a global market. It is tough.
If consumer drones are super high tech like aircraft or space vehicle, US company may win, but if so..... the price point will be so high and there won't be affordable high tech consumer drones market in the first place...LOL.
I do not want 3DR to stop its consumers market drone, I like 3DR innovation and open system.
However in the end money talks. How can a business survive where retail is projected at US$1400* ( *less dealer margin) calculated as revenue for a Solo with gimbal and suddenly slashed to US$1,000 ?
US$400 gone is a lot of money for a Solo price bracket, it is probably above the profit margin 3DR has for Solo. Adding insult to injury, Phantom 3 Adv & Pro already accumulated sales and profits for like 8 months or so. DJI timed the price cut just right, which is when the Solo gimbal actually in proper production volume and proven to be a decently good product.
My 2 cents
DJI may make them cheaper...but been there with their "features/bugs"...I will always pay a more for product reliability and longevity
Seems to me that, since the Solo is the vehicle they seem to be designing new commercial systems for, it's more guaranteed than ever Solo replacements and parts will be here.But longevity is exactly what seems to be under threat now for the Solo. Surely this re-direction will reduce the likelihood of further development, software improvements, and 3rd party innovations? Will Solo parts still even be available in the long run? It's really not good news
Would be good to have some positive assurance from 3DR, but perhaps they're not in a position to do so.
But longevity is exactly what seems to be under threat now for the Solo. Surely this re-direction will reduce the likelihood of further development, software improvements, and 3rd party innovations? Will Solo parts still even be available in the long run? It's really not good news
Would be good to have some positive assurance from 3DR, but perhaps they're not in a position to do so.
If we look at the big picture for the RC biz, most if not all components are sourced out of China. Just using motors as the example. Do you think T-Motors would jeopardize any relationship they have with DJI to fulfill a competing manufactures product? There is no other source for large production BL motors other than China, in the big picture.From business point of view, DJI would be more efficient I would guess.
Not only it has economy of scale, it is based in China and a Chinese company and production of all these drones thingy is plenty in China, not Mexico. The speed of developing something new or making something new at production stage, a US based company can't compete with the Chinese with production backyard in China or even a US company with supporting Chinese suppliers involved. Solo label stated MADE IN CHINA.
this is why i never back to buy super BUGGY dji products DJI Forum|DJI confirms they will Auto-land your Drone
Well, business is business.
Consumers drone market is now majority controlled by DJI, DJI can throw US$100mil down the drain and still smile and they won't collapse.
If 3DR is indeed only $99mil funded :
"The company is one of the better funded among a growing number of drone startups, and has raised a total of $99 million in four funding rounds. "
That is a small amount of funds to battle DJI. DJI knows how much it cost to make a Solo, all they got to do is sell Phantom 3 Adv and Pro at a price point where 3DR can't make profit on Solo if 3DR is to do a price cut ........., then bye bye majority of consumer market profit for Solo.
What separate Solo from DJI Phantom is , Solo is made from zero for movie making platform and at the hands of professionals it is a powerful low cost tool with fast learning curve.
Me being a dumb drone pilot is happy Solo exist to speed up my goal, which is hopefully take better aerial footage while needing the least piloting skill
DJI on the other hand target every sector, and I still believe that the flying-for-fun sector is still way much bigger than true video/movie making crowd. One can take great aerial footage but not everyone can make a beautiful 3 minute video worth watching while it does include some portion being aerial footage and land footage. Aerial footage looks cool and awesome in 2012 but it is boring today, unless it has really spectacular content to watch.
The more spectacular the aerial video one manage to capture, the more one EVENTUALLY will not want to share publicly, this is common sense, it takes $$ and time to capture those difficult or spectacular shoots, so videos like this goes into commercial sector as stock footage or a paid job. Someting to get payback or it is the intention of the videographer that commercial sector is what they are after. These specialized artists probably are not even 5% of a Solo or DJI market. How would a drone company survive selling a drone to such niche market segment if the price point is consumer price at US$1,000 with gimbal ( no camera ) ?
From business point of view, DJI would be more efficient I would guess.
Not only it has economy of scale, it is based in China and a Chinese company and production of all these drones thingy is plenty in China, not Mexico. The speed of developing something new or making something new at production stage, a US based company can't compete with the Chinese with production backyard in China or even a US company with supporting Chinese suppliers involved. Solo label stated MADE IN CHINA.
Whatever DJI buy at 100,000 pcs from their suppliers, 3DR can only buy at best 7,000 pcs or less, that alone means DJI pay less per unit and will be prioritized by suplliers to actually make the product for DJI first and other brands can wait in line. Probably that is what happen to Solo's delayed gimbal...money and quantity talks. Perhaps DJI has enough sales volume to make its own mini factory for their gimbal.
DJI cut price is not because Solo sold "plenty" I don't believe that, what DJI did is the same as what Ronald Reagan did to Russia during the cold war........ tell the Saudis to reduce oil price and see who got more money in the end. That Reagan move made Russia see Chapter 11.
Cut 3DR Solo's profit by slashing drone benchmark price, the Phantom 3 Professional at US$999 where one get free 4K camera + gimbal + superior range Lightbridge and 3DR sales will eventually shrink. As it is now 3DR Solo is like US$400 more money apple to apple compared to P3 Pro due to no freebie 4K camera on Solo, but it is not a pure US$400 more expensive, because Solo Smart Shots capability has $$ value. Since 95% of drone consumers are not video artists, most will go for P3 Pro probably. This is what DJI hope to happen and it will happen.
The difficult part for 3DR in this drone business is , 3DR need to fight a rich Chinese giant, established, started in 2006 where 3DR started in 2007??. The way things usually work ( except iPhone for the time being ) , developed country brands slowly eroded by developing country brands where labor rate is much lower and labor union has no "teeth/power". Whatever extra cost a brand have to endure being manufactured in a developed nation is extra cost, another downside. Now its the opposite, a developed nation brand trying to fight a product coming from a developing nation on a global market. It is tough.
If consumer drones are super high tech like aircraft or space vehicle, US company may win, but if so..... the price point will be so high and there won't be affordable high tech consumer drones market in the first place...LOL.
I do not want 3DR to stop its consumers market drone, I like 3DR innovation and open system.
However in the end money talks. How can a business survive where retail is projected at US$1400* ( *less dealer margin) calculated as revenue for a Solo with gimbal and suddenly slashed to US$1,000 ?
US$400 gone is a lot of money for a Solo price bracket, it is probably above the profit margin 3DR has for Solo. Adding insult to injury, Phantom 3 Adv & Pro already accumulated sales and profits for like 8 months or so. DJI timed the price cut just right, which is when the Solo gimbal actually in proper production volume and proven to be a decently good product.
My 2 cents
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