After my dad passed, my brother and I took over his business manufacturing scientific toys in China, mostly cheap meters to measure electromagnetic field radiation… which a lot of people use to hunt ghosts and spirits.
What many don’t realize is the first run of a very technical product like this one, particularly from a company that’s brand new to offshore manufacturing, can be fraught with troubles. For anyone who ordered an original Pebble smart watch in those early days, you’ll remember they replaced thousands of them for faulty displays that went to garbled lines within hours or days of meeting their owners. Little glitches in a production run that majors like Apple or Samsung can catch, and small volume makers inherently cannot. When we design a new meter or gadget, the first batch is somewhat “prototype”, you catch stuff nobody else did when they enter the world. I can’t help but think those ordering in the 2021 Play date batch are in this group. Even Apple does early field failure analysis on every new product they launch, if you’ve ever had a dud replaced at the Genius Bar, they’re capturing your faulty iPhone or Mac for EFFA engineers to assess and quietly correct. I tended the bar for 7 years.
Lastly… 20,000 units is a fairly tiny order by Asia manufacturing limits. We’re a $2M/year revenue shop and we’re usually ordering around 50-100k units and we order 2-3 times per year for about 300k units sold… in a good year. Our factory still considers us a “small customer”, so 20,000 would probably be in their “boutique” category.
It’ll be interesting to see how this goes. If they could get their orders to 100,000 units, get their build price down to $70 and get the retail price down to $129, they’re in a hugely better place.