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borisb · 04-07-2011, 11:07 AM

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.

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.