By Michael Teich
PopSockets, the company behind the massively successful grips attached to the back of mobile phones, is eyeing a potential initial public offering, CEO and Founder David Barnett told Cheddar Thursday.
"We are considering an IPO. We're considering all options," Barnett said in an interview.
PopSockets, founded in 2014, has already sold more than 100 million units since its inception in 2014, and has been profitable since its second year. The company pulled in more than $90 million in profits last year, and expects a similar results this year.
"The projection this year is roughly the same ーprobably a little less because we are investing heavily in international growth and the infrastructure."
"The net profit is around 45 percent, gross margin is in the high 60s."
Colorado-based PopSockets manufactures mostly in China, but Barnett doesn't expect trade tensions between China and the U.S. to slow it down. Barnett said any increased costs related to tariffs will be absorbed by the company, and not passed on to consumers.
"On the lower priced items, the vent mount, it's only a $15 item, we will absorb the cost and just make less margin. On the more expensive products, we're moving production to Mexico," said Barnett.
"We are looking at Mexico for an electronic device that we are making to avoid a tariff that is coming from China."
Barnett tells Cheddar the electronic device, which is still in development, will be "a wireless charger, but it has some interesting features."
For full interview click here.