Limited PiZero Production
Now, although someone who knows the true situation might be able to negate this post, since no-one with any true knowledge is allowed or willing to speak out let just assume that Occam’s Razor applies.
- PiZero made following a conversation between Eben and Eric Schmidt – makes Eben think to produced the lowest priced possible Pi – Pi Zero was the result
- Retail price point is set too low.
- No big firm (e.g Farnell/RS) wanted to make it or sell it so Foundation had to finance and deal direct with Sony factory.
- Product “offered” to just 2 UK retailers with proviso that only 1/customer.
- The two retailers sell some of their stock at $5 but the rest it can only be bought as part of a bundle (in order to make profits for them as PiZero at $5 is zero profit)
- The un-realistic $5 price means that PiZero becomes the most VFM Pi/SBC/IoT device on the planet by a large margin and LOTS of people wants to buy a bundle of them.
- Various statements leave us with understanding that its taking 2nd fiddle to other Pi production and even in the best scenario it only might make it to 50k/month production in medium term.
- Considering many big outfits already buy other Pi versions in quantity it is very hard to imagine that demand for the PiZero will not eclipse any previous sales figures.
- The current retail distribution model is broken and those of us wanting many PiZero would like it changing.
- Most people think that a price increase is the easiest method of improving things in short term until scale of production increases margins.
- We are not experts in sales but something along the lines of doubling retail price to $10 and let other UK retailers in would seem a way forward.
- Raspberry Pi could take a cut of the increased price and so could the retailers #WinWin
- I don’t know how demand would fall back at doubling the $5 to $10 but since the PiZero has a form factor advantage over the Model A+, that would still make it a good proposition for many people.
- For people like myself in primary schools, it would still be good value as a PiZero system would still be <£14 inc VAT – less than half the price of a (much more powerful of course) Pi 3.
Obviously, Raspberry Pi don’t listen to me but maybe they’ll listen to people who listen to me and do something to help all Pi stakeholders 🙂