Quote:
Originally Posted by Jmirko
As a first step, Onyx should modify the M92 (software, stylus) and position it as an affordable digital notepad for students and office workers - anyone who uses paper notebooks daily. It's a potentially huge market, but it can only be tapped if Onyx can break out of the vicious cycle of "low volume - high price - low volume". I think it must cost less than 200 (USD/EUR/GBP). If this product is successful, it will provide Onyx with the brand recognition, user base, and - hopefully - cash to pursue the strategy further.
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The higher the price, the more ereaders Onyx are willing to supply. The supply curve is upward sloping.
The best way to reduce price is to get more company into the market.