Skydio Introduces The New X2 Family of Drones + House Scan

[Portolo]

When they can sell one $7K drone instead of seven $1k drones with the required tech support, marketing, packaging... it's clear where their priority should lie.

Precisely.

Focusing on enterprise and government is smart play. It would be business malpractice were they to do otherwise.

Not criticizing Skydio at all. Their management is making the correct move. They need to focus on the market that doesn't just want a US made drone, but requires a US made drone. The fact that the margins will be massively higher only adds to the pile of justifications.

To those who don't like what that could mean for the consumer end, put yourself in Skydio's shoes. They're a small firm with limited resources, that thanks to Covid, has suffered near zero revenue for most of the past 6 months.

Skydio can own the US government and military markets. If they land enough of those contracts, they could soon be a buyout target for the large defense contractors. Companies like Lockheed and Northrup tend to have no interest in consumer products.

 

[Jim]

Precisely.

Focusing on enterprise and government is smart play. It would be business malpractice were they to do otherwise.

Not criticizing Skydio at all. Their management is making the correct move. They need to focus on the market that doesn't just want a US made drone, but requires a US made drone. The fact that the margins will be massively higher only adds to the pile of justifications.

To those who don't like what that could mean for the consumer end, put yourself in Skydio's shoes. They're a small firm with limited resources, that thanks to Covid, has suffered near zero revenue for most of the past 6 months.

Skydio can own the US government and military markets. If they land those contracts well, they could soon be a buyout target for the large defense contractors.

To be honest I’m not criticizing either their technology choices or pricing, I’m just irritated that they have decided up front to refuse to sell to the people who got them this far. I have the money and experience and might actually buy one, so refusing to sell me one is both an insult to me as an early supporter of the company and buyer of its product (I’m a Pro Kit owner), and also a flag that they may intend to walk away from this market entirely, which is unfortunate.

 

[Ridefreak]

Yes, but their product is only marginally cost competitive now. Were it not for the (quite legitimate) China concerns, Skydio's products would not be at all cost competitive for a majority of users.

A reasonably kitted out Skydio 2 costs a minimum of $1600, and for many, higher still. (extra battery, charger, controller, beacon).That's a fair amount more than the DJI solutions.

Skydio needs to add more value to the proposition, and subscription charges are hated for good reason.

Even now, on the fence as to whether to complete my order when the email eventually comes. It will likely depend on the new features and whether they're saddled with massive up-charges. A fully kitted out Mavic Air 2 is about 1/3rd cheaper, and may be less expensive still by the time my Skydio slot opens.

When a product sells out 6mos in advance while it's competition is available now says it all about the product's competitiveness.

 

[Lifeisfun]

When a product sells out 6mos in advance while it's competition is available now says it all about the product's competitiveness.

You can't be serious
So if you have limited supply due to shortage in manufacturing ,that makes your product more competitive?

 

[funonfly]

You can't be serious
So if you have limited supply due to shortage in manufacturing ,that makes your product more competitive?

Works for apple every time

 

[Jim]

You can't be serious
So if you have limited supply due to shortage in manufacturing ,that makes your product more competitive?

It doesn’t make it more competitive but may be an indication that it is competitive.

 

[Portolo]

It doesn’t make it more competitive but may be an indication that it is competitive.

Or that it was competitive.. 10 months ago.

But technology moves rapidly. And during many of those months, no Skydios were being produced. Not their fault, but a reality. And also during those months, the competition improved their products and lowered their prices.

The competition doesn't yet match all of S2's features, but it's far improved over last year's product, and does many things S2 cannot. Flight time, night time, image quality, and at an ever lowering price.

But DJI cannot compete against Skydio for enterprise and government users who feel a (quite legitimate need) to use western-made products. And that growing market is able to support high priced, high margin products.

Agree with Jim's comment above, Skydio's recent moves and refusal to sell the new product to existing customers clearly suggests they're walking away from the consumer market.

 

[skydioconvert]

Yes, it was competitive.. 10 months ago.

But technology moves rapidly. And during many of those months, no Skydios were being produced. Not their fault, but a reality. And also during those months, the competition improved their products and lowered their prices.

The competition doesn't yet match all of S2's features, but it's far improved over last year's product, and does many things S2 cannot. Flight time, night time, image quality, and at an ever lowering price.

But DJI cannot compete against Skydio for enterprise and government users who feel a (quite legitimate need) to use western-made products. And that growing market is able to support high priced, high margin products.

Agree with Jim's comment above, Skydio's recent moves and refusal to sell the new product to existing customers clearly suggests they're walking away from the consumer market.

... and yet "new" customers continue to flock to place orders for the S2.

What reserved production run is the Skydio S2 now on ... 6, 7, ???

 

[Ridefreak]

You can't be serious
So if you have limited supply due to shortage in manufacturing ,that makes your product more competitive?

I'm totally serious. SD is building them as fast as they can, for them it's competitive enough, what's to gain by lowering prices and becoming "more competitive". Their product is sold out for the next 6 mos at least. They aren't a huge global Chinese company. They keep being compared to DJI ether directly or implied since the the both sell comparable products, SD isn't DJI, I doubt it ever will be and until DJI cuts into their sales numbers which it hasn't yet I doubt they care. Rather than worry about SD2's competitiveness I'd worry about the future of High tech Chinese products going forward.

Last week, FBI Director Christopher Wray issued a stark warning calling Chinese espionage "the greatest long-term threat to our nation's information and intellectual property and to our economic vitality."
Source

This is nothing new and many Americans know it.

When it comes to a niche products price is frequently secondary or tertiary to the tech and/or the source of the product. For those that don't feel that the SD2 is superior in ether it's tech or it's country of origin they can go out this min and buy the competition's product.

 

[Lifeisfun]

I'm totally serious. SD is building them as fast as they can, for them it's competitive enough, what's to gain by lowering prices and becoming "more competitive". Their product is sold out for the next 6 mos at least. They aren't a huge global Chinese company. They keep being compared to DJI ether directly or implied since the the both sell comparable products, SD isn't DJI, I doubt it ever will be and until DJI cuts into their sales numbers which it hasn't yet I doubt they care. Rather than worry about SD2's competitiveness I'd worry about the future of High tech Chinese products going forward.

Last week, FBI Director Christopher Wray issued a stark warning calling Chinese espionage "the greatest long-term threat to our nation's information and intellectual property and to our economic vitality."
Source

This is nothing new and many Americans know it.

When it comes to a niche products price is frequently secondary or tertiary to the tech and/or the source of the product. For those that don't feel that the SD2 is superior in ether it's tech or it's country of origin they can go out this min and buy the competition's product.

OK then ... must be some new business class I missed ??
Tinfoil hat time, the paranoia set in ?

 

[Portolo]

... and yet "new" customers continue to flock to place orders for the S2.

What reserved production run is the Skydio S2 now on ... 6, 7, ???

A production run of an unspecified size gives no insight into the true demand. It's entirely depedent on how large (or small) the production runs are, which is not public information.

Even assuming there is large pent up demand, that doesn't mean Skydio will continue to pursue the consumer market. Especially if their limited development resources are far better rewarded by producing enterprise and government products and services.

Personal opinion is that the writing is on the wall, that government and enterprise appear to be Skydio's corporate future. Again, not criticizing Skydio for this move, but consumer users should open their eyes to this likely reality.

 

[Lifeisfun]

Works for apple every time

For sure hype is everything if you don't innovate anymore.

 

[VEGASROBBI]

DJI and Apple are very much the same.

At the turn of the last century Studebaker made some of the best horse draw carriages anywhere and they were proud of it; they had a good share of the market. While automobile technology grew Studebaker continued to promote how great their horse drawn carriages were. When people stopped buying horse drawn carriages it didn't matter how great hey were, the market shifted.

The short sidedness of some is apparent, forget about Skydio, the technology is here and will grow. Were I DJI I would invest available resources into this new AI and OA or they will be the horse drawn carriage. It's great to add more range, longer flight time.... but a new bar has been set and demand will be strong regardless of manufacturer.

 

[Portolo]

Were I DJI I would invest available resources into this new AI and OA or they will be the horse drawn carriage.

Strongly suspect DJI are. The question is how long it will take them.

If Skydio focuses on consumer products, they won't be insulated against a DJI with similar features. But if Skydio focuses on government and enterprise customers, they'll should be well positioned no matter how well DJI matches them.

Can't imagine Skydio wants to bet the company on rapidly DJI manages to copy their autonomy. Which is these moves towards government and enterprise (and likely away from consumer products) make sense.

 

[VEGASROBBI]

It's widely accepted the greatest intellectual theft in history is the Chinese stealing US technology, copying, backwards enginnering.... in some cases stealing it then patenting it to deny the creator use.

 

[Lifeisfun]

It's widely accepted the greatest intellectual theft in history is the Chinese stealing US technology, copying, backwards enginnering.... in some cases stealing it then patenting it to deny the creator use.

The US complains that others steal its technology, but America was once a tech pirate itself - The World from PRX

The US complains constantly of China and other nations stealing US technology. But it seems in the early days of the republic, the shoe was on the other foot.

www.pri.org

 

[VEGASROBBI]

Seriously 200 years ago? Everything the US ever allegedly stole would be a mere drop in the bucket compared to what the Chinese have done.

 

[Ridefreak]

You can't be serious
So if you have limited supply due to shortage in manufacturing ,that makes your product more competitive?

I was totally serious and provided a coherent response, it'd be nice if you did the same.

OK then ... must be some new business class I missed ??
Tinfoil hat time, the paranoia set in ?

Once again, your response reverts to a personal attack that's unrelated to the subject at hand. Apparently that's your go to reaction if you don't agree or have nothing to counter with.

If that's all you can come up with you're better off not responding at all. Like I told you before, that type of response does zero for any credibility you have and adds nothing to the discussion.

 

[Lifeisfun]

I was totally serious and provided a coherent response, it'd be nice if you did the same.


Once again, your response reverts to a personal attack that's unrelated to the subject at hand. Apparently that's your go to reaction if you don't agree or have nothing to counter with.

If that's all you can come up with you're better off not responding at all. Like I told you before, that type of response does zero for any credibility you have and adds nothing to the discussion.

Comical..
There is no need for arguments, you are butt hurt every time anyway, so won't make it worse for you ?

 

[Lifeisfun]

Seriously 200 years ago? Everything the US ever allegedly stole would be a mere drop in the bucket compared to what the Chinese have done.

Haaaahahaha, sure, sure ....