Weekly Update 14.09


#1

Dear Community,

In this update I would like to go though our current situation.

Current Situation

I understand that everyone has been waiting for new information, and I’m sorry for the delays. I will try to explain the situation as clearly as I can, without giving away information that we have not yet been cleared to share. We have 2 investors.

  • We have signed our investment contracts, and are waiting for the first payment from the investors. These have been delayed a few times due to minor reasons, but we have been informed that the payment should be wired to us by the end of next week. The scope of the investment covers both— existing orders, and future Eve projects. We have made preparations to have everything in place to move quickly once the money arrives.

  • We currently have most of the devices assembled and our manufacturer is waiting for the balance payment, to ship them out. Manufacturer has been working on the assembly since we shared the investment contract with them and finalized the inventory audit. Given the delays, the manufacturer is eager to move quickly. The moment we receive payment from our investor, we will get the OEM Windows licences, finish the assembly of remaining devices, package the devices, transfer them to HK warehouse, and ship them out. Based on our experience it can take 2-4 weeks.


Assembled V’s in one of the storage rooms waiting for injection of Windows licence.

  • Some of you are concerned that our estimates for both updates and order fulfillment haven’t been accurate. This is understandably very annoying, especially for those who are still waiting for your device or a warranty replacement. Shipping estimates on the website and newsletters have been based on the investment situation and amount of funds frozen. Our shipping estimator hasn’t been always accurate, but it has always been based on what we know, what we see and what we have been told.

We are ready to move super fast the moment it happens. The only thing we are waiting for is an actual wire transfer.

Investors

As for the investors we have 2 parties investing in Eve. One is a big manufacturing company whose expertise is in production and fulfillment, the other is a private investor from Europe. During the year we had a lot of meetings with these investors and we are very confident in our choice and see a lot of synergies in the co-operation.

Investor #1

The manufacturing company, sees a lot of value in the way we operate, and they want to help us with production and fulfillment, while we take care of product development and sales. Unfortunately, I cannot disclose the name of this company as such openness with the community is unusual for them as a private company. They are quite strict about their publicity. This is a big league company working with big brands like Aple, Xiaomi, etc.

Investor #2

The private investor has done a lot of business in China and really believes in our approach of no-middle man sales and crowd development. We are excited to have this investor on board.

Before we got the investment agreement signed we could not risk disclosing more information on where we stand in the investment process.

Frequent questions answered

I would like to address some of the concerns that community has voiced regarding our business decisions and practices. I’ll do it in Q&A format:

Q: How did you end up in this situation?
A:

  • V hit the sales in December. Some of the customer funds were frozen at payment processor and the other part was released to us.

  • We used the funds available to make down payments to our vendors. As we are a startup vendors want to see at least a 50% down-payment. Some would insist 70%. We were also required to place deposits to vendors for a certain quantity forecast.

  • We were able to ship out a good amount of devices, as payment vendors kept the withheld amount relatively low.

  • After shipping devices, we received more of the frozen funds back, allowing us to ship more devices.

  • After seeing that our total sales numbers are high, our payment processors decided to increase the amount of frozen funds to cover their risk -> This reduced the amount of the devices we could ship -> Community became unhappy because of the delays and some customers started a charge-back -> In response to the charge-backs, payment vendors further increased amount of the frozen funds. Cycle went on and on. The more customer unrest, the more funds frozen, the less shipments made.

  • We agreed with our vendors to get devices shipped in substantially lower quantities to get some funds unfrozen.

  • Suppliers become concerned as they would like to ship out the inventory sooner and place deposits for future quantities. We do keep manufacturers updated on the investment process in the meantime.

  • We had a lot of investor meetings. Some of them seemed to be almost at the end, but we did not get the investors to sign the investment agreement as at the last moment one of the parties saw something as a deal breaker.

  • As mentioned earlier, shipping estimates on the website and newsletters have been based on the investment situation and amount of funds frozen. Our shipping estimator hasn’t always been accurate, but it has always been based on what we know, what we see and what we have been told. The reason shipping estimates kept moving is because either the amount of funds frozen would get higher or investment timeline would get extended.

  • Today, we are finally in a situation in which we have the investment agreement signed and are receiving the amount of funds needed to our bank account in a matter of time.

Q: What options did you have?
A:

The situation was: Our funds are either frozen or are at our supplier bank accounts as down-payments or deposits. Minimum amount of funds from before are kept at account to run operations.

Based on the situation we decided to do everything possible to get all the devices shipped out. We focused on finding the investor to get the situation resolved, ship devices, and refund customers. Funds for refunds are available by either using an investment or new sales. This solution means that people waiting for V get V, people waiting for refund get refund, and support continues. We learn from mistakes and never end up in this situation again.

The other option was to stop operations—refund a few customers and explain that we can’t arrange more refunds as the money is at our Chinese suppliers who have the down payments and deposits. Vendors wouldn’t agree to return funds to us for refund simply because there is no gain from this. What it would mean is that very few customers would get refunds and some of the customers would get the device. Funds are at our vendors and payment processors. The only way for customers to try to get them is from them directly. People owning a V wouldn’t have updates and future support.

Naturally, we decided to go with the first option

Why?

Because we had a very reasonable prospects of getting an investor and we did in the end.

Q: Why do you keep your sales open?

  1. Investor asked us not to stop sales. We have a road map with our investor to deliver so V will continue.
  2. We can fulfill the current web store orders at the same time as the rest of orders
  3. We disabled PayPal and CreditCard as a payment option to avoid frozen funds situation
  4. We did stop sales mid-July and it resulted in increased customer unrest and refunds as people thought we are stopping business.

Q: Eve does not care anymore.
A: We do.
Actions speak louder than words. We are fully committed to acting!

Q: I called my credit card company and they said they are not withholding/ freezing funds.

A: Credit card company or bank does not withhold the funds. It is the payment processor that does. In the picture below, Cybersource is a payment processor. It’s pretty complex process to explain. You can read more on it online.


image

Q: When is the next update?
A:
Next Thursday or Friday


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Weekly Update 28.09
Weekly Update 19.10
#2

Thank you very much @Konstantinos for such a detailed response. Even though I’ve already received my V, as a doubter given the last few months, this was exactly the type of post that I would have wanted and hope this goes some way towards answering others questions and doubts and hope the worst is behind Eve now! All the best on order fulfillment for your current and future orders!


#3

Well, it seems that I was wrong in my last posts and @Konstantinos is capable of a proper update. Thanks for that, this sheds so much light on what is going on.

I hope next Thursday or Friday we will learn that the wire came in, the licences are up, assembly is almost done, and you are getting ready for packaging. Then the following week you plan to finish packaging, getting Vs to HK and have them shipped by October.

But anyways, thanks for the extensive update, hope answering questions becomes a regular segment.


#4

Finally the news we’ve been hoping for. Still a fan through all of it. Keep it up & thank you @Konstantinos


#5

Good update :slight_smile:

Its nice to know our V’s could be on our way to us in as little as 2 weeks, although I’d assume it’ll be nearer to the 4?


#6

This update is a Game changer , thank you @Konstantinos .
P.S. Please get to the first option :slight_smile:


#7

Good.

Late. But good.

Q.: how many employees have been fired during that crisis, and how many will you get back once this is done? (I guess in the situation where you are able to fulfill everything before the end of October, before a total unrest of the community happens, and if the news Surface Pro do not totally destroy future sales).
'cause will have to talk about firmware updates, bug fixings, support work force, soon I hope, and if you already fired everybody, that’s gonna be difficult.


#8

If possible, I too would love an update on the situation with your team in regards to both providing warranty support as well as firmware, bug fixing support for the near future @Konstantinos. Thx.


#9

How about all those pending warranty claims? Till now I only got same kind of replies with sorries here and there with no explanation or solution. If u hear us pls give us the ANSWER!


#10

they only had some. as far as I can see the accounts of eve team members here in community, none of them get fired. Xinje (seen Sep. 4), Dario (seen Aug 10), Mike (seen Sep. 2) and all the others seems to be still on board.


#11

I am really sorry that you ended up in such a fucked up situation, but the way you are handling it, and the resistance to not cave in and declare bankruptcy, really inspires me.

This situation is not ideal of course, but just like anything else in the world, nothing is.

You are the subject this song.


#12

as far as I can understand this, warranty claims are in the same boat with flash sale orders and other orders…


#13

@dibadibadu is correct on this one we didn’t have to let people go as we didn’t overtire in the first place. Everyone in our team is needed for Eve to work. I think at think pint more of us are in cusotmer support as there are a lot of inquiries.

The warranty units replacements and future updates will resume at full speed once we get the investmet in. There are some warranty units ready at the manufacturer already. They are not giving them to us to put more pressure on the investor to pay faster.

Thank you guys!


#14

Please give an update about the refund.
I believe many are eagerly waiting for this.
Your customer support is totally ignoring these emails.


#15

the challenge to cut the middle-man isn’t over. even the middle-mans in payment processing actions make things harder… and there’s maybe another middle-man in the house now… the investor. Or is he more at the top than in the middle?

to the refund question I can say that everything is already said here in community. You will get your money, which is not on eve’s bank account, when it is released by the payment processor. eve can’t do anything because they don’t have your money… or am I wrong?


#16

It’s very nice to get a proper update and see where things stand.
Even better to see how much much the situation has improved :smile:

With the delays finally coming to an end, and shipping imminent (and being handled before refunds) it does make me regret applying for a refund even more than I already did :frowning:
(Though I’m still not sure the y-series processor is the best choice for some of my use cases…)


#17

It’s a big relief to know that this ship is going to stay afloat.
You had me worried there for a while.

Very worried… For quite a while…


#18

Thank you, that is the type of update your customers needed. It takes time to properly conceive and write such a comprehensive update. I appreciate the effort made.

Hopefully this is a lesson learned, all the anger and worry of customers can be dealt with a well written, comprehensive and honest update.

Complaining our ass’s off had the desired impact to get such an update out to the community.

So realistically we are all looking at a November delivery, when we consider customs and all the rest. Some of us may get their devices earlier, but we should all have our devices sometime in November.

Santa was two years late but he is still alive and well.

On another point, it’s time to start an invite only discussion on a V version 2. You need it to regain momentum quickly. As a suggestion aim the top spec’ed device for the dev and dev ops crowd. If Microsoft were to be completely honest the SP4 was the halo device for this user set, it was the device that migrated a huge amount of the hardcore influencers away from Apple. I know this because I watched this happen in real time with so many teams in different organization that I have worked with over the last 3 years, plus I asked people why they dropped their “so beautiful Macbooks”. The CICD crowd all use VM’s, ansible, vagrant etc locally before deploying to test, pre-prod. Core count and RAM are the primary selling points here. This crowd screams from the rooftop to their colleagues, Reddit etc, and drive sales like you would not believe. SP4 was the reason MS stayed in the hardware business, it was a make or break device for them since the reception of the SP2 and SP3 was abysmal. If it did not get the reception it did they would have canned the whole division.

I used to work for MS and this is what the guys I used to work with told me over beers. We have some of their newer non released to the public corporate devices to play with at the moment, and I can tell you some other corporations operating in some specialized hardware areas are going to go to the wall when these devices are released to the business users, not talking about 2 in1, laptops, or desktops.

Look at the Dell 5290 and it’s evolutionary journey from the 5285, user upgrade-able and serviceable battery, HDD, Wifi/WAN, no need to make memory upgrade-able (you have to make money some how). Create this device and the creatives will buy it in droves too. My two cents. I also fully expect not to receive an invite to such a discussion. But this discussion should be happening and offline off the main forum so it does not affect sales of current device.

Have anyone thought of incorporating a hardware switch to enable the camera and microphone, lots of paranoid influencers who would love such a feature, instead of taping over the camera’s.

Anyway good luck from here on in


#19

Yeah fair point @konstantinos make an amendment to the post capturing this key dtail.

Unfortunately people wanting for a refund are at the back of the queue. Seeing as per the above update that V orders and warranty claims will hopefully be honoured in October/november the earliest realistic date for refund is probably December maybe late November if they move quickly. Into the new year if they move slowly.

At this point it may be a good idea to cancel your refund and opt back in for a V if you’re still Intrested, it is likely that you will receive a V sooner than get your refund.


#20

Given the positive heading of Eve, opting back into orders really does seem like a good idea.

After not being able to take the delays anymore, and my current device dying, I decided to go for refund.
But on the months since, I haven’t been able to find anything that comes close to the V in terms of feature set or value.
For the price of the V, you could get something with a better processor (even a quad core coffee lake if you go with the Lenovo Miix 520). But the screen will be much lower resolution (1920 or 2160 pixels wide), and it will be noisy (especially the Miix 520, but not the silent Acer Switch 5), and have worse battery life (especially the Asus Transformer 3 Pro).