FreeRunner Pricing and PVT update

[Kevin Dean]

Excellent, thanks for the update!

On Fri, Apr 11, 2008 at 12:50 PM, steve <steve at openmoko.com> wrote:
>
>
>   I thought I would combine a couple posts today. First an update on PVT, or
>  production verification test. Phones are being sent to me from the first PVT
>  run. Michael Shiloh will be back in Silicon valley next Tuesday, so he and I
>  will test the samples and get them out to key partners. I want to check a
>  couple things like using the Nokia batteries as spares and generic USB
>  chargers before I send these samples out.
>
>  Now, for the update on Products, and Pricing,
>
>  1. Products.
>
>   Orginally the FreeRunner ( GTA02) was planned to come out in two packages.
>  Basic and advanced, just like the Neo 1973. We killed that idea. It was a
>  quick humane death. The problem was the GTA02 advanced unit would have been
>  $650 USD. After seeing the response to Neo 1973, a huge response, we decided
>  the best path was to lower the price, reward our early developers, and
>  attract more developers.
>
>  2. Pricing
>  We scrubbed the BOM ( bill of materials). We eliminated the Luxurious bits.
>  Optimized the box like it was code. The first thing we got rid of
>  was the lunchbox. It was cool, but it was expensive and heavy. Eliminating
>  that was a sizeable cost savings. ( think shipping weight).
>
>  Next we pulled out the debug board and made it a separate product.  We
>  priced it at $99 US. about 1 tenth what people would pay for similar
>  capability.
>
>  My goal was to get to a place where we could sell the FreeRunner at $399.
>  USD.
>
>  We did that.
>
>  The FreeRunner will ship from Openmoko.com at $399. For early customers
>  I'm looking at throwing in a few free things. More details later.
>
>  The debug board will be available as a separate product for $99 USD.
>
>  Many people wrote me mails asking if they could get a discount by buying
>  more than one phone. Sometimes they were universities, sometimes a small
>  business, sometimes a small group or club.
>
>  For these people we created a 10Pack. instead of 399 per phone, we will
>  charge 369 per phone.
>
>
>  Over the next few days I will explain the next steps we go through and how
>  the product will get distributed
>
>
>  Steve
>
>
>
>
>
>
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