- Joined
- Sep 12, 2015
- Messages
- 227
- Reaction score
- 70
- Age
- 74
- Location
- Kaneohe, Oahu, Hawaii
- Website
- www.timorden.com
Like others, I can only speculate as well, but to me it seems the biggest mistake was in the production of so many units. 100,000 units at a manufacturing cost of $750 each equals $75 million - 3/4 of the 100 million they raised. Had they not misjudged demand so badly, they'd likely have been able to weather the storm. The Solo is still a compelling, competitive platform even against the upcoming generation, despite what a few trolls might suggest.
The article states that they had smaller and larger versions planned, so they were on the right track in where the market interest was - larger could have been an Inspire competitor, and one only needs to look at the glowing press the Mavic is getting to see that a smaller one would have been popular.
The other issues could have gone both ways - releasing the Solo without the gimbal gave people the time to get used to the software/control system, and shake out any bugs. Maybe not the best choice, but that itself shouldn't have been, and I don't think was, a game-over type mistake.
Turning down DJI's offer? Maybe that would have made the investors happy to get a quick return on their investment, but it would have all but certainly ended everything. DJI's interest was likely a simple means of burying a competitor. They have their own flight controllers, and the open source nature of Arducopter wouldn't fit in there - the same issues that caused the split between them and DroneCode would have happened at DJI. So in the end, the investors would have made money, anything Solo related would have likely never seen the light of day, and we'd all be flying Phantoms. With that probable outcome, I think making an attempt at going it along was the right one. It didn't ultimately work, but not for the sole reason of having tried.
Anyway, as has been said... water under the bridge. Maybe you were saying it off handed, but simply purchasing a produce doesn't make one a stakeholder in a company in any legal sense, I just hope you weren't holding out for official company responses to your questions!
In all likelihood, the actual investors aren't even demanding questions. Investing is a risk, and they go into each one knowing it stands a decent chance of failing. The money to be made if just one out of 10 succeeds is sufficient to cover a loss on the others. Drones were all the rage, and investors were probably looking at it like the smartphone industry in the early days - thinking it would take off. When the FAA regulations threw a big pale of cold water on the industry, they probably chalked it up as a loss right there and forgot all about it.
I beg your pardon, investors take losing money very seriously..
And.. of course, Im not really a stakeholder. I did put my money on what is now a dead horse, though.
I suspect that 3dr didnt want a repeat of the "held hostage" to mfg. So they placed orders to free them for the future.We can only guess but those unsold units would have sold if DJI had not played a war of attrition. Still, didnt 3DR realize that DJI could afford to lose more money than 3DR? Question again...
Why didnt Mr. Anderson, (particulatly after the bow shot of a by out offer) realize what the next move by DJI had to be?
Like others, I can only speculate as well, but to me it seems the biggest mistake was in the production of so many units. 100,000 units at a manufacturing cost of $750 each equals $75 million - 3/4 of the 100 million they raised. Had they not misjudged demand so badly, they'd likely have been able to weather the storm. The Solo is still a compelling, competitive platform even against the upcoming generation, despite what a few trolls might suggest.
The article states that they had smaller and larger versions planned, so they were on the right track in where the market interest was - larger could have been an Inspire competitor, and one only needs to look at the glowing press the Mavic is getting to see that a smaller one would have been popular.
The other issues could have gone both ways - releasing the Solo without the gimbal gave people the time to get used to the software/control system, and shake out any bugs. Maybe not the best choice, but that itself shouldn't have been, and I don't think was, a game-over type mistake.
Turning down DJI's offer? Maybe that would have made the investors happy to get a quick return on their investment, but it would have all but certainly ended everything. DJI's interest was likely a simple means of burying a competitor. They have their own flight controllers, and the open source nature of Arducopter wouldn't fit in there - the same issues that caused the split between them and DroneCode would have happened at DJI. So in the end, the investors would have made money, anything Solo related would have likely never seen the light of day, and we'd all be flying Phantoms. With that probable outcome, I think making an attempt at going it along was the right one. It didn't ultimately work, but not for the sole reason of having tried.
Anyway, as has been said... water under the bridge. Maybe you were saying it off handed, but simply purchasing a produce doesn't make one a stakeholder in a company in any legal sense, I just hope you weren't holding out for official company responses to your questions!
In all likelihood, the actual investors aren't even demanding questions. Investing is a risk, and they go into each one knowing it stands a decent chance of failing. The money to be made if just one out of 10 succeeds is sufficient to cover a loss on the others. Drones were all the rage, and investors were probably looking at it like the smartphone industry in the early days - thinking it would take off. When the FAA regulations threw a big pale of cold water on the industry, they probably chalked it up as a loss right there and forgot all about it.
Yhorse, though.