As promised keeping you on top of things.
Screens QC got pushed to Thursday as there were labour related issues at the distribution center. There were more than normal packages coming and there was not enough labor to sort them all out (that’s the place where goods go to from customes before coming to the warehouse where QC will happen).
QC will happen on Thursday. That’s why we had a week’s buffer in production estimate:) Shipping timeline is not affected
We have done all that is possible to get it sorted faster but officials can be slow at times.
------------END OF UPDATE-----------
Why you dudes run into problems all the time?
Recently we’ve been discussing with our team, Emdoor and partners why would we be having so many challenges with component sourcing. The answer was actually surprisingly straightforward.
This will sound egoistic but we are the first company of small-medium size to enter Tier 1 brand space in Computing category.
So in our industry there are different suppliers tiers. Like tier 1, 2, 3, 4 etc
And all of the companies (all kinds of local brands like Chuwi, Onda, Cube, Telcast and so on) work with max 2nd tier suppliers. While only companies working with 1st tier are Apple, Acer, Asus, Samsung, LG, Toshiba, Microsoft, Samsung, HP, Dell, Razer.
The main difference between first tier and any other tier are components and their quality. So first tier suppliers provide cutting edge stuff. We can even play a little game:) Guess which of these LCD suppliers are tier one or any other tier
Exactly its Samsung, LG and Sharp They are companies that can provide cutting edge display technologies.
Same goes for batteries, storage, housing, USB ports and so on.
For batteries first tier suppliers have more charge scales and offer slimmer batteries with more capacity
For housing there is a huge difference in how device will look and feel on your hand, etc.
Our batteries and housing come from Apple suppliers btw
So to summarize if we want to do great devices on par or better than Microsoft, Samsung, etc we have to go to First Tier supply chain. If we want mediocre stuff second, third tier is more than enough.
Now let’s get back to why we are bumping into challenges with suppliers from time to time.
The answer is very simple. The closest company to us in terms of revenue and order volume from the standard point of suppliers is Acer. Company with 10 billion USD revenue
Why would then first tier suppliers work with us?
- Because they want companies that will give them rapid growth (we have that potential if they do as we say:))
- Crowd development approach is different and they can see we are making waves in media
- They all keep saying :"You never know who will be the next Apple "
So it’s great accomplishment we had with community that we managed to get trust and all of the other components in to the warehouse from First tier suppliers.
We have some challenges now but once we ship Vs open sales and sell more V’s to people who believe in crowd development around the world we will be able to show our first tier suppliers that they made the right choice and then we will be able to set our own rules.
You will say OnePlus
You will tell that OnePlus has done the same and managed to get all of those top tier vendors on board. Eve is not the first company to do that!
Thats what our team thought when we came up with idea to challenge all the big brands We thought that if OnePlus could do it that it will be a piece of cake for us too.
The only difference between us and oneplus is that it is fully owned by OPPO (or actually a huge group that owns vivo as well) one of the biggest smartphone companies in the world. One plus also started with 40 million US loan from Oppo and they used all of the Oppos suppliers. That’s why OnePlus One looks so similar to OPPO find 7
So yeah we are in a bit different categories. As OnePlus = OPPO for all of the suppliers:)
But now that we actually made it! We are very happy that we did not know initially that OnePlus is owned by Oppo:)
Community, we are making history here! And all if you guys make industry change possible.