The Framework Laptop: A Game-Changer in the World of Electronics
I am excited to share with you my recent experience with the Framework Laptop, a device that has truly impressed me. As someone who has been following the latest developments in the world of electronics, I have always been on the lookout for innovative products that challenge the status quo. The Framework Laptop is one such product that has caught my attention, and I am eager to share my thoughts with you.
The Framework Laptop is a laptop that I have bought for myself since high school, but this time around, it's different. This time, I'm not just buying a device; I'm investing in a company. Yes, you read that right. As a long-term investor in Framework, I am excited to share my thoughts on this innovative product.
The Framework Laptop is a game-changer in the world of electronics. It's a laptop that is designed to be modular, with interchangeable components that allow users to customize their device to suit their needs. This approach not only makes the device more versatile but also reduces electronic waste by allowing users to upgrade individual components rather than replacing the entire device.
One of the things that I find most impressive about the Framework Laptop is its design. The device has a sleek and minimalist aesthetic, with a focus on clean lines and simple functionality. The keyboard, in particular, stands out as one of the best I've ever used. It's comfortable, responsive, and features a unique membrane-based design that provides excellent tactile feedback.
Another feature that sets the Framework Laptop apart is its modular design. As mentioned earlier, this means that users can easily upgrade individual components such as the processor, memory, or storage. This approach not only makes the device more versatile but also reduces electronic waste by allowing users to extend the life of their device without having to replace it entirely.
The Framework Laptop is powered by a range of processors from Intel and AMD, depending on the specific model. The device also features a range of storage options, including solid-state drives (SSDs) and hard disk drives (HDDs). This flexibility allows users to choose the storage option that best suits their needs, whether it's for fast boot times, high-capacity storage, or a combination of both.
One of the most interesting aspects of the Framework Laptop is its business model. The company is taking a unique approach by allowing users to buy a "spare parts" bundle, which includes all the components needed to upgrade individual modules. This approach not only makes the device more modular but also provides a new revenue stream for the company.
The cost of the Framework Laptop varies depending on the specific model and configuration. The basic model starts at around $800, while the higher-end models can cost upwards of $1,200. However, what's interesting is that the spare parts bundle costs significantly less than the original device price. This approach makes it possible for users to upgrade individual components without having to purchase an entirely new device.
Now, let's talk about the business model behind the Framework Laptop. The company has taken a bold approach by allowing users to buy a "spare parts" bundle, which includes all the components needed to upgrade individual modules. This approach not only makes the device more modular but also provides a new revenue stream for the company.
The cost of the Framework Laptop varies depending on the specific model and configuration. The basic model starts at around $800, while the higher-end models can cost upwards of $1,200. However, what's interesting is that the spare parts bundle costs significantly less than the original device price. This approach makes it possible for users to upgrade individual components without having to purchase an entirely new device.
In terms of production and pricing, the Framework Laptop has been quite successful. The company's first run of 1,000 units sold out in just two weeks, generating a cool quarter million dollars in gross profit. However, this success comes with a cost. To meet demand, the company had to borrow $330,000 at 8% interest compounding monthly.
To put this into perspective, let's say that Framework places four separate $1 million orders spaced two weeks apart right out of the gate. After eight weeks, they start shipping these orders and generating cash flow. In one year, assuming zero sales growth, Framework has now paid $330,000 in interest. This is a significant amount, but it's worth noting that the company also shipped 26,000 laptops and made over $4 million net.
Of course, this is just one scenario, and there are many variables to consider when predicting the success of a new product. However, what's clear is that Framework has taken a bold approach by creating a modular device that allows users to upgrade individual components. This approach not only makes the device more versatile but also reduces electronic waste.
In conclusion, the Framework Laptop is an innovative product that challenges the status quo in the world of electronics. Its modular design, combined with its business model, make it an attractive option for users who want a device that can be customized to suit their needs. Whether you're a tech enthusiast or just someone looking for a new laptop, the Framework Laptop is definitely worth considering.
"WEBVTTKind: captionsLanguage: en- In this box is the first laptopthat I've bought formyself since high school.You heard me right.I've certainly obtained newportable computers since 2005through work or myconnections as a YouTuber.But I have gone 16 years nowwithout ever feeling compelledto actually buy one for myselfuntil I saw The Framework Laptop.I don't remember thelast time I saw a devicethat so clearly rejected thetrends towards disposable,non upgradable,non-repairable electronics,while still managing to maintainthe premium field that weexpect from a modern ultra book.I was so impressed duringmy initial impressionsthat on top of ordering one on the spotI publicly offered toinvest in the company.Surprise! They called my bluff,offering me a chance to put up or shut upand I never shut.About sponsors like iFixit.Oh, wow.What an appropriate sponsor,from iPhones to Nintendo switches,iFixit has your repair needs coveredwith their lineup of fix kits.Find out how iFixit canhelp you repair your devicesat the end of this video.(upbeat music)The point of this video is threefold,to disclose my positionas a long-term investor in Framework,to explain why I decided tomake this unprecedented move andto talk about what thismeans for LTT going forward.And as we go along,I will be building up theBarebones Framework laptopthat I ordered to my exact specifications.This is actually myfirst time opening thisI've got my packing slip, myFramework Laptop DIY Edition,core i7 11 65G seven.My accessories,love the recyclable packaging.Mhh, What's the padding?Oh wow. It is, it's shredded paper.One of the coolest things aboutthe Framework laptop is thatyou choose your own IO,they come in these littlecardboard containers.And I went with a single USB type A,two USB type C's and an HTMI.It drove me crazy, nothaving one of these.When I was daily drivingthe XPS 13 two in one,I also got totally unsolicited,this envelope a couple of weeksafter my Framework laptop arrived.So we're not only going to be building it.We're going to be fixing itbecause there's an issuewith some of the early units.Of course,none of this would evenbe worth talking aboutif the machine itself wasn't any good.It's got surprising stiffnessfor a laptop that ismissing abunch of pieces, allaluminum construction,2256 by 1504 display,easily swappable bezel.You can even change thecolor if you really want to.And a surprisingly good keyboard,considering that it's modularoverall, good machine at a fair price,but of course the laptop isn'tthe only thing that I bought.My preferred shares in the companycost me exactly $224,998,37 cents.And they give me a smallbut significant stake inFramework Computer, Inc.My investment was partof a seed funding roundthat will hopefullygive Framework the cash.It needs to reinvest in its core business,by building out its teamand designing and stocking new products.Something that we've learned the hard wayover the last three yearsis that supporting a growingphysical good businessis shockingly expensive.Let's use LTT store.com as an example,our gross margins are somewherein the 60 to 70% range,but that doesn't meanthat every time we sella $30 water bottle, we make $20,out of that gross margincomes business overheadlike storage and handling fees,employee salaries and benefits,rent insurance, consumables,customer support,Shrink platform fees.I'm sure I'm forgetting some,but the point is that our net profit,what remains before we pay the tax manis in the 30% neighborhood.I'm not complaining.That's a healthy business,which is kind of a confusing message.How can LTT store be both profitableand expensive to supportwhat sinks a fledglingcompany more often than notis a lack of cashflow, nota lack of profit margin.Oh, let's open up this computerand talk about how this appliesto Framework's business.I ordered the DIY edition.So just add your own wifi,SSD, Ram and operating system.They charge $1049 for themid tier core i7 modelthat I chose.And if we wanted to know theactual cost of all of thisor the bill of materials,we would need to add upevery single little capacitor and wire.Tedious.Thankfully, we can take some shortcuts.The bulk goes to Intel who lists the CPUin this unit at $426 US Dollarsin quantities of a thousand.Most of the major cost contributors,like the battery keyboard,track pad, screen and cooler,we can approximate basedon the street pricesof similar replacement partsand for the motherboard,a non-tech did a wonderfulwrite-up back in 2009,we're just going to borrow,let's say $120 bucksthat puts us at $770 US Dollars.And we haven't accounted for the chassisor any of the other odds and ends yet,but it's also common knowledgethat Intel never charges OEMslist price for their CPU's.So I'm going to say that thecost of this finished packageis somewhere in theneighborhood of $800 US Dollars.That's certainly a lot less than $1049.So good business plan. Here we go. Right?Hold on.The first run of let's say athousand units of this thingwill easily cost northof a million dollars.Once we factor in production setup costslike tooling and molds,much of that,or sometimes all of itneeds to be paid up front.Let's be optimistic though,and say that on top of fronting,the R and D to design this thing,the founder happens to havea million dollars in the bankand that order takes just eight weeksto get through production andreach Frameworks warehouse.Now we make another assumptionthat demand is strongand all 1000 units sell out in two weekswith a cool quarter millionDollars of gross profit.Damn.That's a lot of money,sort of remember all thatpesky business overheadwe've got to deal with that nowleaving half, if we're lucky,a hundred grand profitis certainly better thana kick in the teeth,but if you want to grow your sales,well, you need to take all of that profitand put it back into your second order,which is going to give youa little over 1100 units.You'll get them eight weeks from now.If you are insanely lucky.And in the meantime,you have absolutely nothing to selland no money in the bank to pay your staffwhile they twiddle their thumbswaiting for the next shipment.So even if my numbers are way offand Framework is netting twice thatlet's say $200 a unit on the spare bones,the best case scenario for themafter a year of utterly flawless executionis $3 million in cash.That's enough to increasetheir bimonthly orderfrom just a 1000 to 3000 units,but they still wouldn't haveenough to meet customer demandand keep orders flowingsmoothly from the factory.And they wouldn't have saved a pennyto reinvest in facilities,equipment or R and D.Their competitors wouldbring new products to marketslowing demand for thisnow out of date design.And unless they adapt,they will eventually have nothingbut a warehouse full oflaptops that nobody wantsand an empty bank account.GG.Now let's do it again,but with a big bucket of borrowed cashat 8% interest compounding monthly.In this scenario Frameworknow gets to placefour separate $1 million ordersspaced two weeks apart,right out of the gate.After eight weeks,they start to get these ordersin generating both the cashthat they need to restock them.And a cool $200,000 in profit.Every time an order sells through,a year into this scenario,assuming zero sales growth,which is very unlikelyFramework has now paid$330,000 in interest,which sucks,but they also low keyshipped 26,000 laptopsand made over $4 million netParty time, right?Not quite,remember that $4 million loan,whoever lend them that moneyneeds something in return,or they're going to startlooking for some legs to breakFramework, could pay it back,but that would completely wipe them out.So they make a deal,how about instead of the moneywe give you guys a chunk of this company,and then we can just keep using that moneyto expand our product portfoliothe same way we did last time,we eventually grow sobig that we go publicand you can sell thatportion of the companythat you bought on the open marketfor way more than you paid.Or you can just keep itforever if it suits you,maybe you just like the stock.Well now instead of a\"loan\", it's an \"investment\".And if all goes, according to plan,Framework grows faster.So more customers get super cool laptopsand the investors get paidback their original money.And then some, everybody wins.By the way, I need toinvest in some remanent SSD,I bought the Barebones, one moment please.Conveniently Frameworkincludes the only toolthat you'll need to assemble the device,but I'm sure iFixit isnot too upset about it,because these guys are100% on the same teamand you'll need one of thesefor almost any other laptop.It's refreshing not to be treatedlike I can't be trustedwith my own hardwareand you know what,there's going to be costsassociated with thatbecause people will break themand they will complain,but it's worth it tohave more open devicesavailable for consumers.And what's cool is for repair shops,they have even committed to providing theschematics of the boardsif they want to do board level of repair,which is super awesome.The labels in each slotindicate that it supportsup to 32G modules,but rather than go allthe way to the limit.So I've actually just gone with two 8G,3200 megahertz modules from Crucialand for storage it supports up toa single PCI expressgen four, M.2 22 80 SSD.I decided not to go gen four though,because I'm more concernedwith good enough performanceand excellent battery life.So I want the SK Hynix gold P 31 SSD.Now at this point in thevideo, we've nailed downthat Framework clearly needs moneyso they can build more of these things.But I haven't explainedwhy they need mine.And the truth is they don't.They actually closed thebulk of this funding roundback in Q2.And one of the otherinvestors was already in lineto take the remainder.They could have accepted that offer,but they didn't insteadboth Framework and I decidedto take a leap of faithand I call it that because both of usare taking some big risks here,here are their risks,in no particular order,I could bring my own egointo internal discussionsand try to have an outsize influenceon their direction as a company,compounding that risk,I could take my disagreementspublic or worse,suffer some kind ofcatastrophic fall from grace,Zheng Shuang style,ultimately damaging theirbrand by associationfar more than I evercould have boosted it.The thing is dropping aninfluencer from your ad campaign,pretty straightforward affair,hosting a shareholder.It's a little more complicated.Meanwhile, I carry my own bag of risks,starting of course withthe most obvious one,I could easily lose my entire investmentof nearly a quarter million Dollarsbecause unlike a loan,investments typicallycarry no personal guaranteeor other securities.If we win, we win big.If we lose tough luck brah,and second,if I pump this company's tiresonly for them to turn aroundand abandon their openapproach to repairabilityand upgradability,I'm going to look like a complete ass hat.And finally, since we're onthe subject of my credibility,this move creates an enormousconflict of interest.Anytime I'm covering orcommenting on any laptop.Can I really be trusted to speak my mindabout a competing devicewhen it directly damages the prospectsof a company I'm financially linked to?Can I handle being pulledin two directions like this?I think so, but even if that's true,a portion of you won't believe me,and it means that I'm going tohave to clutter up our videoswith non entertaining disclaimers,disclosing my position all the time.So then,why do it,well,the bottom line is that I fell in lovewith the vision behind thisproduct the moment I saw it,I want a Framework in my backpackand I want a seat at thefront of this crazy ride.And as a shareholder,I get to throw my weight behind Frameworkin ways that you guys might not consider.Believe it or not,I have some connectionsin the tech industry.I know, I know, I know crazy, right?I don't find much time forpersonal relationships these days.I mean, you all know about my friendshipwith Terren from Coursera,actually Dell now,but he doesn't evenwork in press relations.I talked to John from Unraidon a fairly regular basis,but we usually talk shop.And the same goes for Gary Key from ASUSwho by the way,was one of my idols when Iwas a young tech reviewer,I'm not a sociopath or anything.I've just always believed thatI have a finite amount of time.And if I focus thaton making the best contentI can with my writing team,eventually I'll reach the point wherewhether I enjoy schmoozing or not,people can't really ignore me anymore.And I'm hoping to usethat to help Frameworkget connected with partnersyou'd think of like AMD,Horizon version has the numberone request they've receivedsince my original video.And once you might notthink of like D brand,the co-brandingopportunities of working withsomeone like D brand ona skin drop are huge.However prickly theirpublic persona might be.Those robots are absolutegenius level mad lads.Now to be clearFramework would have sortedthis stuff out on their own,but in the same waythat bringing in outsidemoney can accelerate growth.I'm just hoping to poura little bit of gasolineon the relationship fire.Speaking of fires, by the way,please do not light up our support emailasking when the LTT backpack is coming,it is coming, confirmed here,but not until sometime inthe mid to distant future.The cleanest way to handle this,is to recuse myself from all decisionsrelated to our editorialcoverage of notebooks books.With the size and talent of our team.That's a legitimate option these days,frankly, I've had very littleto do with it for a long time.Since there's been so little in the space,that's excited me,but my only issue with that is that meansI'll be giving up theopportunity to talk to you guysabout truly incredible machinesthat I am excited about.Like the ASUS RG flow X 13,that I've been daily drivingfor the last few months.Aside from some, yeah,we sent you a prototype,bugginess, I absolutely love that thing.It is so cool.So for that reason,I'm reluctant to completely bud out whenthere's still going to be stuffthat I'm going to think is cool.And I'm going to want to talk about,what I know for sure is that even thoughI'm not ready to make afirm commitment to coveringor not covering notebooks in the future,I will make a firm commitment to maintainthe same level of honesty and transparencythat you guys have come to expect from me.I will never say that Ilike something I don't,I won't hold back from anything I love.And I will keep you guys 100%apprised of the situation.My second commitment to you isthat if Framework reneges onthe promise they made to me,my breakup with them will beswift,absoluteand in public.Here it is.I got this in writing fromthe founder Nirav Patel.We do promise not to up(beep) from a pro-consumerand pro-environment perspective,and you would be fully justifiedin holding us to the fireif we break that promise,sounds good to me,just like our sponsor iFixit.Thank you iFixit forsponsoring today's video.This is totally on message you guys.iFixit is all about consumerrights and repairability.They make it affordable tofix or upgrade your devices,using their custom iFixit kits.For example, the Nintendo switchhas an all-in-one kit to fix joy con driftfor just $20 US Dollars.They've got iPhone screen replacement kitsfrom $75 US Dollars,and the kits includeall the parts you needto do your repairs,including precision bits, opening tools,and suction cups to make the installationas easy as possible.iFixit also has numerousrepair guides with clear photosand instructions to preventyou from getting lost whileyou're deep inside your repair.So check out our link to iFixitdown in the video descriptionto get your kit today.(upbeat music)If you guys enjoyed this video,maybe go check out my original videoon the Framework Laptopwhere I went into a little bit more depthabout who these guys are,where they came from and howit actually all goes together,speaking of which I forgot to put my IO inand I forgot to fix mytouch pad cable issue.Because I was so busy hosting the video.The only reason othercompanies can't do thisand Framework proved it isbecause they don't care.\n"
