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Re: 1GH/s, 20w, $700 (was $500) — Butterflylabs, is it for real? (Part 2)
by
Inaba
on 18/01/2012, 23:35:52 UTC
Why is the lead on devices ordered today the same as when they hadn't even been designed or built?

Because it takes time to get components sent from over seas and assembled.  Perhaps you're not familiar with the concept of NON mass produced items.  

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Why isn't the money they have collected enough to put stock on their shelves, so to speak? Generally, profit taking doesn't begin in a business until the business becomes profitable. So why aren't their margins on the 'singles' already preordered put back into procuring more units, thus reducing lead time?

So why would you put stock on shelves if you don't know what actual demand is going to be?  That would be incredibly stupid from a business standpoint.  I would keep barely enough stock to ship a couple units and order the rest as required until I were comfortable with what demand is for the long term.  It would be ignorant in the extreme to order 1000 units and then have 700 of them sitting around gathering dust.

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If the money isn't enough, why haven't they sought capital elsewhere? VC funds fly around all day, for far stupider plans than this. The fact that they still don't have machines leads me to believe they haven't successfully sought it out.

Why?  Why not?  Why be indebted to someone else?

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Yes, the aforementioned questions that remain unanswered lead me to believe it is unreasonable to still have a 4-6 week (that could turn to 4 months without explanation, apparently) lead time. You are telling me that they are building these as orders come in? Not in batches? Seriously?

I don't know what they are doing... but from my considerable experience, I've already outlined what I would be doing were I in their shoes.