How to Decide Whether Price is a Good Value

How to value custom Android hardware

I like having an expectation of price when buying something.  You probably do, too.  An expectation makes judging value easier.  Human nature has something to do with this.  It’s clear if some products are priced fairly or not.  For example commodities like gasoline or bananas.  Quality of common grades of gas or breeds of bananas don’t vary greatly between different sellers.  Therefore pricing shouldn’t vary greatly either.  Many products we routinely buy, whether for personal or business use, fall into this category for the most part.

The closer a product gets to the customer the more potential for adding value.  This seems to apply universally, from custom Android projects to dinner.  On one end of the food spectrum is something simple, cheap, and low quality, but edible, like instant noodles.  On the other end is a culinary experience of globally sourced ingredients, prepared to the exact specification of a culinary artist, and served in a majestic environment.  Both fight hunger, albeit are priced very differently.

What justifies the price difference beyond the cost of ingredients?  In the example given above it’s the ambiance, presentation of the food, and taste.  The value customers feel from a high end restaurant experience far exceeds the cost of the actual food.  Buying products follows the same logic.  A mass produced product that is similar to many other products has little added value.  For example, a pair of generic headphones usually costs only slightly more than the seller paid for it themselves.  Customers pay more for branded products, even those that are very similar to an unbranded product.  The higher price comes from the reliability, quality, and sometimes prestige the brand represents.

Not all customers value things the same way.  For some the brand matters, for others they just want the commodity.  The value a custom product manufacturer brings differs from the value a commodity commodity device seller provides.  The custom device manufacturer needs to spend more resources developing the custom device even though the volume is lower for a custom device than a mass market device.  Custom Android device buyers often have niche use cases that deliver a higher value to the end user as well.  More work goes into making a custom product.  That means the product must deliver a higher value to the end user than a commodity product; the same way a dining experience delivers a higher value than instant noodles.

A custom Android tablet.

Most of Hatch’s customers use their custom Android products for business applications.  Their products offer a high value to these businesses and require a manufacturing partner that offers an equally high level of service and knowledge.  If a commodity product breaks the customer simply exchanges it at the retailer.  If a business product breaks that means a company is losing money by not having it work.  Also fixing the problem costs more than exchanging a product at a retailer.  It usually requires a technician to deal with the problem.   Business buyers should look at commodity costs as a clear point of reference.  The art of determining a fair price for the added value comes from quantifying a supplier’s capabilities on one side; and the cost of something going wrong with the project on the other side.

“No one got fired for hiring IBM” is a saying which means that IBM has such a good reputation that an employee would never get fired for hiring them, even if a problem arises.  Many highly skilled companies are small and don’t have the reputation of large competitors.  When evaluating a partner for a custom project, it’s necessary to understand exactly what additional value the partner will bring.  To do this, find out what kind of projects the partner has worked on before.  Ask for referrals from past clients.  Take into consideration how quickly and precisely the partner communicates.  If they offer sensible and clear answers from the beginning that’s a good sign.  If not then don’t expect them to start after paying the deposit.

Up front due diligence requires digging into the details of how businesses operate.  Spending time to get comfortable with a potential partner increases the chances of success for your project.

Tips for a Speedy Custom Android Development

Making a custom product takes time.  Usually, more time than our customers realize as there are never less details, and often more, during a development process.  But through experience we learn optimization techniques that have a big impact.  Below are some concepts you can apply for an efficient, yet reliable development process.

The App

When building a custom Android device, the key to quick development is identifying which parts of the product exist already.  That way you start testing your app on existing devices at an early stage, rather than waiting for your custom hardware.  Start by finding a sample of an existing product which uses the same CPU and Android version as your custom product, these are the foundation of an Android product.  While the existing product and your custom product won’t be exactly the same, the existing product can be used to start testing the basic functionality of your app.  Starting this process early saves time and generally results in a better app.

Special Hardware

To continue with efficient development, it’s necessary to know which components matter and aren’t standard.  Consider the purpose and focus of the product.  This determines what other components are important.  For example, if taking photos or video using a wide-angle camera lens is part of the device requirements, try to get samples of different cameras to test with the chosen CPU to make sure the camera quality is good enough.  We’ve seen the same camera provide different results with different CPUs (better results happened on CPUs with integrated ISP).  Ultimately this motivated a change in the device CPU because the camera quality was such an important feature of the product.

During this stage the hardware doesn’t need any case as the point is quick compatibility testing of the hardware.

Casing

Basic concept is to start prototyping as early as possible.  It’s possible to prototype even before the electronics are ready.  Hatch’s customers usually design the exterior of their product case with an industrial designer (Hatch does the inside, mechanical engineering, part).  Previously we had a customer approve a prototype and then a few months later change their mind regarding part of the external design.  The mass production tooling was already done at that point, so the change ended up costing additional time and money.

Even if the custom Android electronics aren’t done, if case design is very important to a customer, it’s possible to quickly get a simple PCB made with just case fittings.  For example, a blank PCB with just a USB, earphone, and charging port, rather than all the electronics components, so the customer can test from purely a mechanical and design standpoint.  If that prototype works the same one can be used once the full electronics are done.

Tips for Efficient Custom Development of Android Hardware

When conceptualizing a customized Android device, the 3 main areas to focus on are casing (mechanics), electronics, and firmware. Other aspects may include accessories and packaging (depending on business model), to name a few, but this article focuses specifically on the Android device itself.  Key factors within each area affect the development cost and time and unit cost. Understanding what impact different factors have enables a more efficient and beautiful development process. Read on for a summary of key details that matter in custom Android development.

Casing

Casing is unique as it incorporates two different disciplines of design; external and internal design.  Usually called Industrial Design and Mechanical Engineering, respectively.  If good looking external design isn’t a key aspect for your custom Android hardware then using just a mechanical engineer for both should be fine.  Many mechanical engineers mistake themselves for industrial designers anyway.  Usually external design means less for products that users don’t see or are purely functional in nature.  For the sake of this article we’ll look at the best way to approach a product where design matters.

External design, unlike all the other areas covered here, is exclusively based on perception and emotion.  Intricate details affect branding, perception, and usability.  Hatch highly encourages our customers to work directly with an industrial designer (rather than through Hatch or any other final product supplier) on the case’s external design for the highest quality results.  Hatch will provide the dimensions and other relevant information to support the designer.  To allow a smooth transition to the mechanical designer, the industrial designer should define gap tolerances between the parts of casing, exact colors, and materials.  Usually industrial designers do a good job on the latter two, but making the case fit perfectly can take a lot of time.  Having this requirement from the beginning gives a clear goal, allowing a supplier to test internally before sending to the client.

It’s best to use a mechanical engineer with product specific experience to create the mechanical design.  That’s why Hatch takes control of mechanical design once external design is finished.  Hatch’s mechanical designers have made and modified hundreds of Android devices like tablets, phones, and custom hardware.   Without start to finish product specific experience even a very qualified mechanical engineer won’t foresee product specific design nuances.  Those nuances are related to finished product quality and, through support of supply chain partners, component selection.

Only through seeing multiple products go from start to finish do hidden design optimizations become clear; this is the definition of experience.  For example structures within the mechanical design to strengthen ports or block dust from entering the screen area.  Sometimes ‘the perfect’ design requires an expensive or difficult to source component.  That must be avoided (and there’s no such thing as perfect design).  Collaboration between Hatch’s experienced engineering team and a client’s mechanical designer combines the best of both worlds.  This has a higher cost for the client and maybe overkill, but certainly covers all bases.

Simple takeaways:

  1. Make sure your industrial designer specifies gap tolerances between parts of casing.
  2. Use a mechanical engineer with Android device experience for expertise with quality manufacturing details.
  3. Have the mechanical engineer work with a supply chain partner (like Hatch) to verify that the components suggested by the industrial designer are easy enough to obtain now and into the foreseeable future.

Electronics

All projects have specific performance requirements that call for different kinds of electronics.  Potential for remorse comes when choosing commodity components like a screen or battery, designing around that, and then finding out that the screen isn’t crisp enough or the battery doesn’t last long enough.  When customizing an Android device choose components individually, by testing them in other devices first.  If there’s a screen you’re considering then get a sample of another device that uses the same screen to see if you like it.  Once you decide on all the key components then make an initial prototype to check that they work well together.

As much as possible stay within the framework of the CPU manufacturer’s reference design.  Clients have asked for a certain Bluetooth chip that’s not included in the reference design.  A change like this requires changing the tried and true reference design.  This change opens the door for new bugs.  It also takes a lot of engineering to make this modification.  Changing the reference design usually comes with a high development cost and higher mass production risk.

Simple takeaways:

  1. Sample key components individually in existing products before deciding on the final list.
  2. Test a prototype that integrates those chosen components before making mold.
  3. Stay within reference design; changing it opens the door to unpredictable problems.

Firmware

A combination of knowing the result you want from customized Android firmware and clarifying what customizations are possible at the onset of a project sets the stage for smooth development.  The key here is to ask specific questions to the right people so you get reliable answers.  Many Chinese suppliers hire inexperienced sales people based on their young age and English ability.  Young means they’re cheaper and English means they can serve as a conduit of information to the customer.  Oftentimes the answers these people give customers are incomplete or just wrong.

Hatch uses direct connections with IC companies and their licensed engineering companies to directly access management level engineers.  While the engineers don’t usually speak English that’s not a problem and we’re usually able to get real answers about implementing complicated customizations.  Like proper directions before a new journey, knowing whether the customizations you want are feasible avoids going in the wrong direction.

Simple takeaways:

  1. Clear definition of what’s needed before starting the project.
  2. Find the right person to confirm feasibility of customizations saves losing time going in the wrong direction.

Any project that tackles the unknown is prone to risk and surprise.  Applying the takeaways, learned through first hand experience, listed above when approaching the project will maximize reliability while intelligently managing risk.