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Old 04-07-2011, 09:13 AM   #1
alex_edge
Edge User
 
price bottom falling out!

The Amazon price for the PE is now down to $226.95 *brand new* from Amazon. That looks like a fire sale to me.
 
Old 04-07-2011, 09:14 AM   #2
borisb
Edge User
 
Get them while they're hot!
 
 
Enthusiast
Old 04-07-2011, 10:14 AM   #3
Adiposius Maximus
Edge User
 
B&H Video has the EE for $468 and says they have "limited supplies". If this is how enTourage stays afloat, I'd hate to see them scuba dive.
 
Old 04-07-2011, 10:34 AM   #4
borisb
Edge User
 
Perhaps you missed the post, but enTourage is in a squeeze at the moment. Clearly they need to keep the channels filled with product, but that takes money, which takes sales, which takes keeping the channels filled with product, etc. Given modest sales and cashflow, we can expect to see limited quantities until things pick up. It's not like they're sitting on a huge bank account with the cash just collecting interest
 
Old 04-07-2011, 10:42 AM   #5
StevenP
Edge User
 
If they intended to continue producing the current models then why take the products pages off their web site? I really don't think they intend to continue producing them. A new model, maybe. Perhaps they are working on a way to improve specs and reduce cost?

Last edited by StevenP; 04-07-2011 at 10:47 AM.
 
Old 04-07-2011, 11:07 AM   #6
borisb
Edge User
 
Yeah, there are still some puzzles in this game.

Perhaps you're spot on and a new model has in fact been completed (sort of like the Ermine beta), and enTourage is trying to put together cash and inventory for its launch, in what may well be a "close call". At this point, with inventory levels already low, it wouldn't hurt for them to publicize the upcoming model so as to retain customer interest in the company (i.e., assurance that operations will continue). Cannibalizing existing sales at this point should be less of a concern.

What I've been thinking about, though, is an alternate scenario. Removing the product pages makes it harder for people to discover the device, and yet the Forums and info floating around the Internet, not to mention word-of-mouth, still seem to be generating sales. Could the move have been to temper sales to levels that they could actually meet? A somewhat scarce product may entice people to continue seeking it ("playing hard to get", if you will) while a endlessly out-of-stock product would make people give up and look for something else. Then, too, some retailers may require somewhat regular stock replenishment to continue to list the item on their site. If it's out of stock too long it might be delisted.

I would say enTourage has near-term and mid-term survival milestones. Near term would be mid-May (i.e., do they even have enough cash to simply continue paying staff and running the operation at a bare minimum). Mid-term would be end of July (i.e., can they launch a new model and/or gain further venture capital and financing and thereby demonstrate continued viability even at low or moderate levels).

If enTourage is unable to continue manufacturing eDGes, then they have no other revenue streams big enough to keep them going (I'm pretty sure the eBooks and eMusic aren't significant, especially since you can get the same content in many other places). Software companies have it much easier, as copies of software can be sold with no manufacturing cost these days, but hardware companies must pump out physical product, which has a high upfront cost.

As always, our guesses are all we have, as enTourage doesn't disclose its personal business publically.
 
Old 04-07-2011, 11:17 AM   #7
StevenP
Edge User
 
If they are working on a new model, which I really hope, it would do well for them to begin publicizing this. That would strike up interest and most likely investor support, as well. The current stock they have appears to be drying up and dropping in price so I see no harm to the sales of what is out there now. In fact, it would help since people would have more faith that the company will stick around.
 
Old 04-07-2011, 11:58 AM   #8
Dr. T
Edge User
 
But wouldn't we have seen any sort of new model at CES 2011?
 
Old 04-07-2011, 12:03 PM   #9
borisb
Edge User
 
Not necessarily, if you believe in the sales cannibalization syndrome. That was 3 months ago and there was much more inventory at the time to get rid of.
 
Old 04-07-2011, 12:29 PM   #10
NiaTrue
Edge User
 
If I were enTourage and working on a new model, I think I'd hold the timing of such an announcement a bit, until all the other tablets currently entering the stage have completed their initial introductions into the market. Another tablet announncement right now would fall on deaf ears, I think.
 
Old 04-07-2011, 12:34 PM   #11
JBrondos
Edge User
 
Quote:
Originally Posted by Adiposius Maximus View Post
B&H Video has the EE for $468 and says they have "limited supplies". If this is how enTourage stays afloat, I'd hate to see them scuba dive.
Isn't there a difference between Entourage clearing out their stock and distributors clearing out THEIR stock? I suppose any number of distribution models may be at work here, but one would have to know whether the EE units being sold by B&H have been in the B&H warehouses for 4 months or 4 weeks. Entourage isn't necessarily making more money NOW just because B&H (and others) are selling them now. And why announce a new one if you want to sell off the old ones first?

Did Entourage make enough capital with the first edition to do development for a second? If their reduction-in-force came AFTER all the money was gone, then they'd have to find more investment capital for round two. If the RIF came in order to retain money for development, then perhaps a new model is in the works. Do we know enough about the company to make educated conjectures?
 
Old 04-07-2011, 12:38 PM   #12
NiaTrue
Edge User
 
Quote:
Originally Posted by JBrondos View Post
Do we know enough about the company to make educated conjectures?
No, we do not. We're engaging entirely in conjecture. Importantly, we also don't know how much VC they started with. They may have started with enough for two or three models, or two or three years under a certain set of circumstances--but we have no idea what those circusmtances or conditions are/were.

Last edited by NiaTrue; 04-07-2011 at 12:39 PM. Reason: Darth Copy Chief in action
 
Old 04-07-2011, 12:47 PM   #13
Glow
Edge User
 
If I were researching and thinking of buying an eDGe, and could not find product descriptions and specs on this site, I would hesitate to purchase. To me it implies a lack of marketing and support.
I certainly came here before I made my decision, when the pages were still up.
 
Old 04-07-2011, 01:04 PM   #14
borisb
Edge User
 
That's what I thought, too, initially, but most retailers actually have a lot of detailed product info on their sites, including videos (e.g., http://www.tigerdirect.ca/applicatio...tourage%20edge).
 
Old 04-07-2011, 01:06 PM   #15
borisb
Edge User
 
BTW, TigerDirect.ca now lists the PE in stock for the lowest Canadian price ever of $249. That's half the price it originally listed at when launched.
 
 

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