Please excuse me for my ignorance, but I really can't figure out why the Pronto Pro is expected to sell for $750-1000. Here's why:

1) Passive matrix GameBoy Advance $99. Laugh, but, there is a pretty complex computer under it's hood.

2) Samsung TFT 15" monitor $399 after rebate.

3) Compaq iPaq 3536 color PDA $500. Much more complicated engineering wise than a remote.

4) Passive matrix 13.1" color screen, Celeron based Laptop $800-1000, depending on brand and options.

The Pronto 2000 is $400, but can be had for $350, even less. Other than extra memory, color is the only thing new to the Pronto Pro. Let's face it color LCDs are dropping in price like leaves in November. I love teh Pronto. It's the best out there. But honestly, what is Philips rationale that the color version is worth $700-1000 when other complicated LCD devices sell for much, much less? I'd love a Color Pronto, but for $1000 I'd rather use the money towards upgrading my reciever.

I just don't seem to understand either.
You can't compare a street price of $400 to Pro's MSRP.

I just can't understand why some of you guys don't see RF as a MAJOR new feature. Granted it is an option, but it will be the biggest selling point to the client who buys a system from a custom A/V outfit. The Pronto has grown up and the old one is almost obselete for these applications. You can't compare a street price of $400 to Pro's MSRP. Rabid home theater enthusiasts, audiophiles and people in the business don't need their macros to always be perfect, but if you sell these devices professionally as a 'control system' to allow a user to get the most out of their equipment without having to know about selecting digital input modes or component video on their tv, etc. a reliable RF adapter is really a must.

WHEN PEOPLE DON'T KNOW HOW THE MACROS ARE CONSTRUCTED THEY DON'T ALWAYS AIM AT THE RIGHT PLACE.

I know that through OptiLink systems etc this problem can be solved in a room where the equipment is hidden or located all over, but it doesn't work around the corner. I know, IR eyes in keypads all over the house will give you operation from other rooms, but you still have to aim at it. RF will give you control without aiming within the theater room and probably the adjacent rooms, and perhaps beyond in some locations.
If the Pro sends both IR and RF simulteaneously (which I don't know) then you can still have IR eyes in rooms that are far.

Trust me they'll sell -- if not as well to do-it-yourselfers, then in the custom market. When RC5000i's go for $800 professionally customized for your system, $1200-$1300 for color and RF will be an easy sell. It's a drop in the bucket in a $20,000-$40,000 system and will be a steal compared to the baby Crestron at $4000 to $5000

People come on you will never see a Pronto Pro sell for 700-1000 dollars. MSRP is $1300.00 with charger. You might see it for $1150.00 as Philips is trying to re market is MSRP price befor the middle of next month.
As suply and demand grow for this remote expect to pay higher prices. Philips is not going to flood the market with 10,000,000 of these right a way to drive the cost way down. Expect your local AV store to only get a handfull of them each. This is insider info from the source taht I have. The info posted on remotecentral is at best RUMORS

As far as the price for the remote, that's pretty cheap considering what the remote can do. The Lexicon 700T with the RF module (TCM-3RF), only has few upgraded features from the Pro and it isn't even color! Programmed, the 700T sells for almost triple the price of the pro! And we have sold more than a couple of the 700T's in the last year.

With the advent of the Pronto and RC5000 pro, I'm sure we will sell less 700t's. We already have sold and programmed 34 RC5000i's in the last 4 months. We sell an RC5000i with every system that doesn't need special control features.

So, the price of the Pronto/RC5000 pro is a steal!

It's all (or most) about demand and supply. The Pro is probably only 20% more expensive to produce than the normal Pronto (my illiterate guestimate), but if enough people are willing to pay the asking price, then it's not too expensive. Simple as that.

An equivalent example is form the car industry. How many honestly think that a Ford Mondeo is twice as expensive to produce than a Ford Focus. But people are willing to pay the extra price...

/Allan

Just compare the Pro's asking price with the Pronto RU890, still available for under $200, shipped to the US.

If you take a look at every one of the items listed above for comparision on price, each and every one will sell considerably more than the Pronto Pro.

Now if Philips could sell a couple million a year, you would see price price reductions based on volume. I can not see philips selling even 100,000 per year, more like tens of 1000's.

Volume helps dictate price, imagine if Ford, GM, Chrysler sold only 10,000 vehicles a year...what would be the price to the consumer?

Randy

Thanks to everyone who has replied but I have to disagree with most of the assesments so far.

Argument #1- "it's less expensive than similar remotes."

This may be true, but you can't compare to other systems because they are meant for very high end home theaters. The Pronto is a mass market remote. Furthermore, the OS of the Pro is nearly identical to the 2000. If the Pro was new from top to bottom it would be a different story. The 2000 sells for $350. A 2" Passive matrix screen doesn't cost $350-1000 EXTRA.

Argument #2- "It's not expensive because it does a lot." What does it do that the 2000 model doesn't do? Both are programable beyond belief. Pro adds color and a RF option. Also, color PDAs do a lot too, and I would say laptops do a lot more than a remote. Even tiny Apple computer (by market share) has a $1300 TFT laptop.

Argument #3- "It's supply v. damand"
The unit isn't even on sale yet. How do we know what the supply is? Moreover, I think a high price tag will only keep demand down. I don't see how Philips wins by keeping the Pronto in the closet. We are not talking about cutting edge technology here where Philips needs to fetch an exorbitant price to pay for reasearch. We are talking about a color version of the Pronto. It's a freaking remote - not HDTV. The OS research was paid for with the 1000 model.

As I under stand it my friends. Philips plans on releasing about a million from now untill Christmans. At that point they are going to re-evaluate supply and demand and cost. Granted, I beleive the price will drop towards the first of next year (not by much, maybe 50 to 100 dollars). But keep in mind did the 1000 and 2000 ever drop in price? NO! Wholesale price to its retailers did not, however retailers did across America slashed prices to earn less profits on somethig that was a good seller. I guess we will all have to wait and see what the final out come of all these RUMORS are.

Larry and Ben I think you are both correct.

Original pricing is based upon volume estimates vs manufacturing costs. No one really knows and certainly Philips has the ability to re-evaluate on the wholesale side midstream but that is very hard to implement at a point that there is supply already in the channel _and_ Philips has not traditionally lowered pricing as Larry pointed out.

Whether Philips is OEMing the color display is not known, but I would think it is unlikely since they have their own manufacturing facilities.

So the more likely scenario is for the retail/etail channel to lower margins as was done on the TSU200 if they can increase volume or increase demand once the initial supply increases.

It would be foolhardy for a seller to cut pricing on something they cannot get enough of.

-Bruce
alpha2data

Ben:
Counter Argument #1: I don't know, if I would call the Pronto or Pronto Pro mass market. I don't think Philips, (or anybody else) thinks every one will have a Pronto one day. It is more affordable, but it is still a high level controller.
Furthermore, the OS of the Pro is nearly identical to the 2000. If the Pro was new from top to bottom it would be a different story
From what I have heard it is new :-), The original design (OS, Software, Hardware) could not handle colour. just because they were built to be compatible, does not mean that they are the same.
The 2000 sells for $350. A 2" Passive matrix screen doesn't cost $350-1000 EXTRA. but there is a lot more memory, RF... so it is more then just the difference in Colour VS BW

#2
Also color PDAs do a lot too, and I would say laptops do a lot more than a remote. Even tiny Apple computer (by market share) has a $1300 TFT laptop.
1) colour PDAs are about 2x the BW PDAs so the PRo is not that far off.
2) I would say laptops are different then remotes, (do you real want to have to boot up the PC to change the channel)
3) and you can get a cheaper more powerful desktop then laptop for the same price

4) Apple might be tiny compared with microsoft, but it is not that small, I am sure they sell a lot of PCs


#4
1) We are not talking about cutting edge technology here where Philips needs to fetch an exorbitant price to pay for research. how many remotes (even the ones that came after the Pronto even come close to it
2) The OS research was paid for with the 1000 model.
see above.


I would love for the remote to cost less but I just wanted to voice my opinion on your arguments.