I do believe there’s a bit of telephone going on with that. Ess off hand said it was more in the first year than the total of octa sales up to that point not necessarily 10x.
2 Likes
Looking at this data:
https://largestcompanies.com/company/Elektron-Music-Machines-MAV-AB-285824/closing-figures-and-key-ratios?currency=EUR
it would seem that Elektron ‘bet the farm’ on generating the tooling for Model Samples and Cycles, hoping presumably for an equivalent sales volume increase much as the previous years Digitakt and Digitone had provided over earlier models.
Model:Samples was released in Jan 2019 and Model:Cycles a year later, so the turnover figures for 2019 of EUR13.6m don’t reflect the impact of the Model:Samples on their bottom line.
If the previous years turnover was E15.4m, and the majority of sales were DT and DN, then at a retail price of E700 - less 20% VAT = E560, split with the retailer, gives - E280 which may or may not be split again with an importer. I’m guessing Elektron are big enough to handle the importing, so imagine that E250 is probably their retail return price on each DT and DN. If the DT/DN are the largest selling, then adding something for the more expensive boxes suggests approx 50,000 DT/DN’s were sold.
Presumably Elektron hoped to double/triple that figure by reducing the entry level retail figure from E700 down to E350 for the MS and MC. Who know’s, presumably they didn’t sell at the desired volume and Elektron are temporarily hurting having pumped EUR15m into the tooling for the MS/MC platform. This could explain the getting rid of key staff and the apparent shift towards SAS. The fact that Elektron has failed to fulfil the intended release of the Model:Sample/Cycles battery handle suggests that the MS:MC haven’t performed as hoped. The omission of a new product in Jan 2021 is also worrying as the past ten year history suggests a clear product cadence:
Octatrack 2011
Analog Four December 2012
Analog Keys November 2013
Analog Rytm 2014
Overbridge 2015
Analog Drive & Analog Heat 2016
Digitakt January 2017
Digitone 2018
Model:Samples Jan 2019
Model:Cycles Jan 2020
??? - Jan 2021.
We will get a better picture when their financials for 2020 come in. Hopefully the pandemic helped sales for the company.
The great mystery is how new product innovation seems to have stalled for Elektron in 2021. Presumbly the pandemic accounts for this but the departure of Ess and Cenk suggest something else is taking place.
1 Like
Retail margin is roughly 25% and not 100% so calculate with E450 net revenue per digi.
1 Like