I saw the Jambox at bestbuy today. This tiny wireless speaker was going for $179.99. I see beats had a wireless speaker also. (Both of these were blu tooth). Skullcandy needs to get in the market I have to believe the gross margin on these are high.
I just couldn't believe this tiny speaker was going for so much, seems like a goldmine specially if people are buying it.
The new Bose Soundlink II mini will be released in July and will be the leader in this space, Gross Margins are in line with earbuds and the category is hot with growth of over 30% Y/Y (NPD 2013).
The execution in this space is obviously a concern, the last conference call spoke to that point and sounds like they'll be filling the gaps in their portfolio in the near future. noise cancelling, wireless speakers etc etc
Wifi (direct) is more expensive to manufacture about $20 on the chip and whilst it has low latency it's more proprietary so you can't connect to every device the way you can with Bluetooth. Also the latest developments in Bluetooth standards dramatically reduce power consumption, improve stability so if it's close range solution Bluetooth is the go.
Problem with blu tooth is it sucks power expecially when streaming music consistently. WiFi is much more efficient and the route most gaming sets go for consistent play. Us adults have a bug up out butts for blu tooth because of the mobile / cell phone use, but kids think it sucks and most devices utilized for music don't stream blu tooth (iPods etc.)... However, I agree that Skullcandy needs to branch out some and into fringe markets. Wescoat, Alden and Darling have all promised this will happen ASAP during the last 2 ear pings calls. Don't hold your breath for too long though as they move at a snails pace and usually start by handing out samples as the ski down the slopes in Park City while slamming shots of tequila . :).