For those with perhaps a better business sense than I, please help me understand this issue which is bugging me.
MTH and Lionel have proprietary operating systems, and existing tooling for remotes. But by most accounts, they are planning to discontinue manufacturing of the remotes. Yes, of course the electronics will need to be updated at some point, but I guess I can't understand how they would not WANT to produce new remotes.
It seems to me that the remotes would have more profit margin that the trains. Think of the issues involved with producing new locomotives and rolling stock as far as variety of details etc year after year, but basically, the same remote can be sold year after year after year.
Plus, even though we've all accepted that the phone apps are the way of the future, I don't know, I still think even if they have the apps, a good percentage of hobbyists, maybe most other than first time buyers, would at some point buy a remote.
Yes, sure there is a cost associated with developing a new remote, but so what? If you are MTH or Lionel, that's your business, you have proprietary operating systems, and you could likely fit the new electronics into the existing cases so could use the same tooling, or maybe just need to modify the tooling for different internal mounts, etc.
Even if the operating systems are public or will become public, its not like there is enough market for a third party to be interested in further dividing a small market, but for MTH and Lionel, IDK, it just seems strange to me that they would choose to discontinue something like this.
I get it, I am not an old man out of touch with technology, I grew up with computers and am tech savvy, and people think this is the wave of the future, but IDK, it might just be the wave of the present. There's really no novelty of controlling the train with a phone. I understand that some people who are not that into tech think this is so groundbreaking, but it really wouldn't be thought of that way by young people at this point. Frankly I think the pendulum is actually already swinging back to where kids would be more interested in a novel remote than using the "device" as usual. Then they could still check their texts and email and whatnot like they do all day and still have the train running with the dedicated remote. I guess I just still think that the remotes would sell for train hobbyists, and would have a better margin than some other things these companies make.
Not my field, not my paycheck, but just for kicks, what am I missing? Is blutooth or wifi that expensive to license or develop a circuit for, or is the processing to use those transmission schemes too expensive for a reasonably priced remote?
Maybe its a cost and marketing thing: right now they sunk all their R&D money into the app, so the marketing is that the app is the best thing since sliced bread, wow man wave of the future, then in a couple years it'll be hey here's a dedicated Bluetooth DCS or Legacy remote, wow man, awesome, way better than using your phone!