Tuesday, June 7, 2016

The Pricing Logic of Typhoon H from the Perspective of A Consumer

                                                              
                               yuneec_typhoon_2-1024x768
                                                       Typhoon H
I took an interest in Yuneec’s Typhoon H back in CES 2016, and I couldn’t believe it when after all their advertising they released a simple ultrasonic equipped aircraft and priced it at $1299. You can buy a consumer drone right now for anything from 300 to 1500, and the Typhoon H’s features, i.e. WiFi video transmission, ultrasonic sensing (not computer vision), and remote controller with embedded screen, are not that different to the Q500 4K. Why then is the Typhoon H a full 100% more expensive than the Q500 4K? My bet is that they are giving their dealers a huge cut to help push their product on consumers.
                q500-side
Typhoon Q500
Looking at other WiFi transmission equipped Typhoon H competitors like the Explorer V, 3DR SOLO, and Phantom 3 4K, which all suffer from the typical WiFi limitation of short range and sensitivity to interference, it is odd that the Typhoon H is three times as expensive as the Explorer V, and twice as expensive as the 3DR Solo and Phantom 2 4K.

                    XIRO-Xplorer-V-FPV-5-8G-RC-Quadcopter-Drone                                                                                                          Xplorer V
  3DR SOLO
3DR SOLO
    P3_4K
 Phantom 3 4K
Why is the Typhoon H so much more expensive than its rivals? The answer may lie in high profits for dealers. As long as Yuneec delivers on its advertising, dealers will earn healthy profits. They can also take on promotion themselves, to convince more consumers to buy the products that benefit them most. It’s natural in a capitalist market to pursue profit, but if that’s done on the back of backward technology it’s a bit like the story of the emperor’s new clothes.
Core functions of Typhoon H:
a. Flight control system: The same as the one used in the Q500 4K, offering barely satisfactory agility and maneuverability. In high winds, flying can be unstable. The obstacle avoidance system only has a 1.5m ultrasonic range.
b. Video transmission system: 4K camera with wide angle fisheye lens and a WiFi video transmission system with a claimed transmission distance of 1.2 km. We all know WiFi is very susceptible to interference.
c. Propulsion system: Weighing in at 1.78 kg it might have 6 propellers but that doesn’t really mean any benefit over 4.
d.Extras: A 360° rotatable gimbal with retractable landing gear adds more weight and makes aircraft maintenance more complex. It’s a great concept, but not practical for consumer drones and it does nothing but add cost.
e.Ground control system: A remote controller with a 7 inch screen makes the controller big and heavy. Much more so than simply a big phone. I can’t imagine anyone enjoying using it while they fly.
f. All of the functions I have listed above (except for the ultrasonic obstacle avoidance) can also be found on the Explorer V, 3DR SOLO, and Phantom 3 4K. Some aircraft may even be better at these functions, while others offer even more. The Phantom 3 4K is not only RTF, it also captures images that I like to call RTS – Ready to Share.
g.Progress in the UAV industry would be impossible without the accumulation of core technology. Consumers are willing to pay much higher prices for products that are only a little better. Yet It looks like Yuneec has adopted a strategy of high price and high profits, all in the name of encouraging their dealers to cheat customers. It’s questionable whether this pricing logic is smart, but if that’s really what they are doing then it looks like Yuneec is tricking the consumer plain and simple.
What do you guys think?

1 comment:

  1. Looks like Jon has had his foot stomped by Yuneec. Look all the other fabricators are doing the same thing so that is the nature of the Drone business. I own a 3DR Solo, a DJI Phantom 4 and 2 Yuneec Drones, one of each flavor. In my opinion they all charge excessively. I do however love each of them.

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