Mailing List lml@lancaironline.net Message #8891
From: Hamid A. Wasti <hamid@regandesigns.com>
Subject: Re: Garmin 530 boycott
Date: Mon, 12 Mar 2001 21:51:59 -0800
To: <lancair.list@olsusa.com>
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Robert Dorsey wrote:

The more complicated things get, the more you will see this
approach by manufactures to help reduce the possibility of lawsuits.

I do not think this policy has anything to do with lawsuits.  It is the
manufacturer not willing to spend the $$$ supporting the first time installer
and risking their reputation at the hands of a bad installation.

I think everyone is aware that liability is the main reason for the high
cost of operation critical hardware.

That is news to me.  Things are expensive because the market is small.  After
Garmin spends $5M to $10M (just a guess) to develop and certify a box, they
needs to recoup the cost in the units they sell over the next few years if they
are to stay in business.  If you open up a a GNS430 and add up the cost of all
the individual parts in there, you will be hard pressed to get much over
$1,000.  The rest of the price is the development cost.

Government regulation do a lot to inflate the cost of bringing a product to
market.  Liability concerns do a lot to increase the cost of selling a
product.  But the bottom line is that the small number of sales is what keep
the price of the product high.

Hamid


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