More on a small computer...
Lora and I exchanged some lengthy emails last night on this subject. Here's the one that kicked it off, basically indicating that my pricing structure was definitely off. While I later concede some of her points, there are some other factors involved that I'll just have to leave to your imagination...
Hey Evan,
Are your daughters going to use Linux? LOL You took me back in time. I felt like I was reading an article from 1999 or 2000 because of the hardware description.
I'm not sure that your costs are right. Was that Microsoft cost or real cost after import taxes, US sales office profit margin, then for sale?
You say $50 for the board, but let's use a board that is available en mass and people are doing what you described:
VIA EPIA-V8000A VIA C3, uses SDRAM, has audio, video, and LAN - Cost $88 in bulk; retails for $99 Case with Power supply - 90W minimum required - Cost somewhere around $50 - $100 depending on appearance and quality of power supply SDRAM memory - nonECC, unbuffered, 512MB - Cost $89 on open market, B or C grade, so it is a step up from toy grade Hard drive - 40GB for around $48 Windows XP Home $83 Total Cost $358 plus freight * 1.05 = $375
Wow the system builder just made $17. I'm sure they'll be thrilled. lol Of course, there is keyboard, mouse, optical drive, and display too. Even if the case and motherboard are sub $100, as you suggest, then you're still not any more competitive over current $399 systems. What's compelling about it?
If you want a $399 system, there are plenty to choose from, and some with quite a bit more processing power -- either AMD or Intel based. (Yes, then you have a fan.)
3) Remember, 5+ year old kids want streaming audio, streaming video, play games, play MP3s while chatting, chat, and more chat. Four year old technology can't handle this. Plus, they want USB 2.0, IR, and bluetooth to sync with their other gadgets. Run as much as a kid would, and then see if you think it's fast enough. Go to a few pre-teen sites, the javascript doll making sites, play iTunes, and have 5 chat windows open, plus homework, and then see if it's OK. Adults are usually more careful about what they open than kids.
4) Put it into a robot that can do the things 2-4 year old kids want and OK, I can rationalize it a little better then. Or, just use a smartphone and figure out a way to attach it to a monitor. Either of those ways are cheap and cute.
It's a tough product to sell, and a few companies like AJump, EWiz, Max Group, ASI, etc are building low cost, small boxes. Intel has repeatedly had a problem with microATX, VIA with miniITX, and now with the miniBTX. If anything, VIA with miniITX was able to ride the edge of custom systems and portable gaming machines for LAN parties, but these are not sub $400 systems. (Check out www.mini-ITX.com) -- Lora
She's right that it's easy to build a cheap"ish" system using commercially available parts, but of course you get what you pay for. But what if I was paying for a different value proposition to begin with? Could you make a market as big as the current PC industry with a different value proposition? Probably not. But maybe just maybe you could create something just a little special.
