from Balaji | by Balaji



over 1 year ago

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Just to explain (not a dunk) — Apple can pull off hardware but most startups can’t. You need to be flawless on execution when it comes to physical product. Can’t just backspace if you make a mistake. And even then you can get killed by supply chain forces outside your control.

Two of the very best hardware companies of recent times — Oculus and Fitbit — had to eventually be acquired by software companies with high margins that could fund the punishing costs and uncertainty of hardware development.

Now, layer on top of that: - The US/China trade war - That no one else has the hardware ecosystem of Shenzhen (and China more generally) - That successful hardware is quickly cloned - The high quality of the existing hardware you’d have to compete with It’s hard.

Dropshipping isn’t new hardware development, though. And you often have a Chinese supplier with an American marketing frontend. That model may not be as feasible going forward. Still, yes, you can resell physical products via an interface. That is different than creating them.

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