Quite simple.
10 GPS Interconnects can be sold for $90.
POET cost on building it would be around $10. I am assuming current producers costs are 5X+ this (a guess only). Also, POET”s form factor will be smaller, allowing for more integration options for the industry going forward, less power etc.
The net: POET can provide a solution to the market that is much more cost effective, more energy efficient, providing more margin for the partners/selling entities, and efficiencies for the end customer.
Economics of the play are compelling which would immediately shift share to POET. Why would one even consider the bigger, more expensive and more power drawing older model? Why would partners sell the less profitable one?
More importantly with 10 gps, it is the fastest way POET gets "on the ground and running” in the industry which opens many more lanes/channels for faster interconnects, allows POET to scale the company with revenues coming in the door, and provides a proof point for other vertical application partners that this tech is ready for prime time.
25 GPS, 50 GPS, 100 GPS to follow...
