Amstrad Sells 298k e-M@iler Devices
Posted: 19th Feb, 2004 By: MarkJ
Amstrad has managed to sell almost 300,000 of its e-mail/Internet 'e-M@iler' phone devices, so says its interim financial results for the 6 months to December 2003. There's also word on an enhanced version of the product:
As shareholders will recall, the e-m@iler business model is based on subsidising the sales price of the units with the subsidy to be recouped through a revenue stream derived from usage of the e-m@iler. We are currently manufacturing and selling an updated version of the e-m@iler plus which has some new features that increase the e-mail revenue potential. In view of the increased revenue generated and in keeping with accounting practice generally adopted in this industry where hardware sales are subsidised, we now consider it appropriate to take account of future revenue streams when assessing the net realisable value of stock.
A total of 298k e-m@iler units have now been bought and registered since the launch of the e-m@iler. As part of our strategy of increasing the installed base the retail price of the e-m@iler plus was significantly reduced after Christmas in most retail outlets from around £49 to around £29. Lower manufacturing costs together with additional revenue potential have made this price reduction possible and we believe this new price will provide a significant impetus to volumes.
In December 2003 the average revenue generated from the installed base was £21k per day (approximate annualised rate of £7.6m per annum). The majority of revenue continues to be derived from e-mail and surf usage; we are particularly encouraged by the contribution from other services such as the downloading of ring tones, games and SMS text messaging. Our new updated version of the e-m@iler plus is the first telephone in the UK to have a dedicated DQ button (directory enquiry button) which allows the user, at one touch, to be connected to one directory enquiry service of our choice and enables us to rent this feature to directory operators. We have recently entered a 12 month agreement with 11 88 66 Ltd, a wholly-owned subsidiary of Telegate AG, Europe's largest independent directory service provider, who pay us for the use of this facility.
Advertising revenue is growing as the installed base is becoming more attractive for advertisers and our total audience reach is now believed to be over 1 million people. We have attracted leading names such as AOL, BT, Halifax, BSkyB and Onetel all of whom advertise regularly on the e-m@iler.
While, in principal, the e-M@iler is a wonderful device, we've never been a fan of it due to the semi-concealed re-occurring charges you have to pay after buying the unit.
Many would much rather pay a larger sum for the device and not have the extra per-use costs to deal with.
As shareholders will recall, the e-m@iler business model is based on subsidising the sales price of the units with the subsidy to be recouped through a revenue stream derived from usage of the e-m@iler. We are currently manufacturing and selling an updated version of the e-m@iler plus which has some new features that increase the e-mail revenue potential. In view of the increased revenue generated and in keeping with accounting practice generally adopted in this industry where hardware sales are subsidised, we now consider it appropriate to take account of future revenue streams when assessing the net realisable value of stock.
A total of 298k e-m@iler units have now been bought and registered since the launch of the e-m@iler. As part of our strategy of increasing the installed base the retail price of the e-m@iler plus was significantly reduced after Christmas in most retail outlets from around £49 to around £29. Lower manufacturing costs together with additional revenue potential have made this price reduction possible and we believe this new price will provide a significant impetus to volumes.
In December 2003 the average revenue generated from the installed base was £21k per day (approximate annualised rate of £7.6m per annum). The majority of revenue continues to be derived from e-mail and surf usage; we are particularly encouraged by the contribution from other services such as the downloading of ring tones, games and SMS text messaging. Our new updated version of the e-m@iler plus is the first telephone in the UK to have a dedicated DQ button (directory enquiry button) which allows the user, at one touch, to be connected to one directory enquiry service of our choice and enables us to rent this feature to directory operators. We have recently entered a 12 month agreement with 11 88 66 Ltd, a wholly-owned subsidiary of Telegate AG, Europe's largest independent directory service provider, who pay us for the use of this facility.
Advertising revenue is growing as the installed base is becoming more attractive for advertisers and our total audience reach is now believed to be over 1 million people. We have attracted leading names such as AOL, BT, Halifax, BSkyB and Onetel all of whom advertise regularly on the e-m@iler.
While, in principal, the e-M@iler is a wonderful device, we've never been a fan of it due to the semi-concealed re-occurring charges you have to pay after buying the unit.
Many would much rather pay a larger sum for the device and not have the extra per-use costs to deal with.
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