This is a question directed at Chris Anderson, which I wanted to ask him in his Reddit AMA, but I missed it. However, I'd welcome the views of others as well:
I saw Chris speak at Maker Faire New York. One of the things he said about his decision to manufacture in the US and Mexico is it allowed for much more rapid innovation and iteration. While those are generally good things, in hardware you can't push out a free or low cost update the way you can with software. With rapid hardware iterations, you run the risk of annoying customers who purchase something, only to have a better and/or cheaper version come out very shortly after. While this has always been the case with computers, mobile phones, etc, those items had longer, and more predictable iteration cycles.
So, the question is, how do you balance rapid iteration with customer satisfaction?