Some IoT companies are making money; others are leaking it. Margins in IoT are already tight, but many brands are losing cash in ways that are completely preventable.

RMAs, bloated customer support costs, churn, and on-site technician visits all add up. Too many companies default to replacing hardware instead of fixing the code. Without OTA updates and remote diagnostics, budgets get drained by unnecessary shipping and support costs.

One Memfault customer used observability tools to cut RMAs and customer support tickets drastically, saving them real money.

Churn is another silent killer. If your device doesn’t work reliably, customers leave. Companies with recurring revenue models especially can’t afford that. And sending on-site technicians for preventable issues? That’s just burning cash.

The bottom line: IoT brands that ignore observability and OTA are losing money. In today’s market, that’s not a risk worth taking.

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