Re: Black Arrow announces 28nm 100Ghash Bitcoin ASIC under $1.99/Ghash
The above quotes simplify to this for me: BlackArrow has promised his Prospero ASIC pre-orders (completely paid by Oct sometime) will be 25% cheaper than the market price of currently-shipping non-pre-orders
Correction: 25% cheaper than the market price of the orders that are shipped in February 2014, not today.
So If you sell the Prosperos in Febuary for 100$ all pre-order customers, which would get 25% discount (75$), will get the difference btw. there paid prices and 75$ in Hashpower. And you garantued that you will be cheaper then all other market competitors for each timeframe ... for example if Bitmine delivers conicraft for 1 GH / 0.50 $ in February ... you will sell the prosperos for under 50$?
Sorry, I might have some difficulties to understand your ... pricing model ... as it hasn't been written anything of that on the webpage ...
You cannot sell 1Gh/0.50$ not in February and not even at the end of next year. You cannot sell a product for a price which not covers manufacturing costs. As we keep saying there is a threshold where you cannot go lower. That threshold it is called cost of sales, overheads and operating loss.
Then lets take some other numbers ... 1 GH / 2$ ... 200$ for 100 GH ... from an other competitor ... scheduled and delivered in end of February ... If I got you right, you would then adapt your pricing to be better then your competitor ... less then 1 GH / 2$ ... and also pre-orders would profit from that ... right ..?
Let's make the statement and avoid numbers at all
You will see that it does not change the essence of the message. I will use your help.I will quote you:
"you would then adapt your pricing to be better then your competitor"
"and also pre-orders would profit from that"
You got it right. This is our statement.
What this statement means from the point of view of numbers:
1. 28nm costs are the same for everybody who makes 28nm.
2. a company needs to make profit in order to run further or it is called bankruptcy.
3. a company may choose to have very low profit margins, lower than other companies.