Raspberry Pi Holdings: Pi Connect & Industrial Stickiness

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I think they mentioned it's 50 cents a month.

You could argue they're not maximizing value capture, which they could be doing with a solution like that. Or maybe they are by offering more nuanced, custom-designed, tailored solutions. Perhaps their goal is to bombard the market broadly and capture it, then focus on tailored custom solutions. I know they do this for huge volumes of products. For example, I saw a website with a strange model, possibly the Compute Module 3, but with a Compute Module 4 chip. I'm not entirely sure, but I inquired, and it was a custom design for specific customers.

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I think they mentioned it's 50 cents a month.

Maybe that's the goal. However, I feel a lot of the mentality is tied to bringing costs down, like with the RP2040 and RP2350 microcontroller lines. They're about reducing costs while increasing the value of documentation, engineering, and community examples. Still, it's a lot about low cost rather than high value, which might be market value compared to competing solutions from companies like STMicro. So, maybe there's a lot of that in the thinking.

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If they wanted to capture more value, what pricing do you think they could implement for Raspberry Pi Connect or any given module that comes to mind?

That's a good question. Specifically, the software is the differentiation. The hardware competes against Chinese companies like Orange Pi, which you might have heard of during research. Some resellers are banned from carrying those lines. The real differentiation is in the software and its ecosystem. I think a model where it's free for very low volume but involves custom negotiated contracts for large-scale volume could work.

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