The availability of all components that go into making Mobile+ are widespread; in addition, manufacturers that currently assist in the production of tablets and smartphones have setups that would require little to no modification in order to begin production of Mobile+, which translates into low manufacturing cost. It is estimated that the unit cost would be less than $100; it is however inflated to $150 when generating the financials in order to provision for inflation and flexibility in negotiating better quality components.
The unit comprises purchases of raw materials as well as production. The complete manufacturing process is delegated to the manufacturer (with oversight); there is therefore no direct labor cost.
Even with freight set at $3 per unit, and a “ridiculously” low sales quantity (1 million in 12 months) gross profit is calculated at over 46% ($139 million).
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