Meet the Start-Up That's Disrupting 3D Systems Corporation's High-End Portfolio
Meet the $3,299 Form 1 by Form Labs, an up-and-coming, 3-D printing start-up spun off from MIT Media Labs. This 3-D printer came to be thanks to patents on a 3-D printing technology known as stereolithography, or SLA, held by 3D Systems , expired. On a high level, SLA utilizes an ultra-violet-curable liquid and an ultra-violet laser to create high-detail prototypes and models in a layer-by-layer process. SLA is typically reserved for high-end printers and applications demanding high precision. A top-of-the-line 3D Systems SLA unit can easily cost over $100,000.
As you can imagine, offering a $100,000 technology in desktop form is a compelling value proposition in the marketplace. Consequently, an engineer may opt for Form 1 over extrusion-based alternatives because it could give him a much higher-quality result for a relatively small incremental cost. After speaking with a Formlabs representative at the Inside 3-D Printing Conference in New York City, it came to light that demand has been so strong that purchases made today won't be fulfilled for another six months!
Cleary, 3D Systems may have a serious problem on its hands, because if a start-up can democratize a 3-D printing technology typically reserved for high-end and high-cost machines for a fraction of the price, it may force significant pressure on pricing down the road.
In the following video, 3-D Printing analyst Steve Heller and Motley Fool industrial bureau chief Blake Bos sit down to discuss the risk that Formlabs poses to 3D Systems. The key takeaway is that while Form 1 is a promising product, investors should wait until Form 1 establishes itself before assessing the risk it poses to 3D Systems' business.
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The article Meet the Start-Up That's Disrupting 3D Systems Corporation's High-End Portfolio originally appeared on Fool.com.Blake Bos has no position in any stocks mentioned. Steve Heller owns shares of 3D Systems. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.