Ripe For Disruption
This is a product ripe for disruption. Texas Instruments has sold the same graphing calculator to high school students and their teachers for more than 15 years. It has a lock on the market and lesson plans of math instructors throughout the US. Essentially it has no competition, and it can afford to charge what it wants — around $100 for an instrument that might cost $20 to make. One wonders why no technology company has taken TI on. Maybe because the niche is small and there isn’t enough revenue for everyone. Still, that shouldn’t be a barrier for a hungry manufacturer to introduce a better product for the same price. TI isn’t dependent on the calculator business for its annual revenue and earnings, but it is a nice fillip to its bottom line. It is getting away with gouging students and teachers and will continue to do so until a competitor emerges.
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