Hey guys, I have some questions about companies that sell hardware. Companies like Go Pro, Peloton, Fitbit, how do they have a sustainable business model when consumers are buying with the intention of it lasting and performing for 10+ years. Once you buy Go Pro, regular consumers wouldn’t buy another even if the new one can shoot 8k Pelonton, you buy once to have a fancy gym bike Sure mobile phones/laptops are sold repeatedly to consumers every 2-4 years with some noticeable hardware upgrade but what justifies business mode of hardware businesses that are “good enough” once you buy
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Peloton has a recurring revenue business model from the subscription based classes they sell. The bike is not the point. Google bought FitBit and will presumably keep it alive just to access the biometric data people pay them to harvest, and besides, it's still a consumer electronic product. They squeeze margins like crazy and are likely doing better than you'd think. Margins on cameras are crazy (tech has gotten cheaper, prices haven't quite caught up), and GoPro customers are loyal. Anyone using it for something related to their profession (or just dedicated amateurs) will wear through it faster and be more interested in upgraded specs if they feel their videos are of subpar quality compared to their competitors'.