The most likely culprit, and I am just speculating here based on the reasons offered for the delay, is that it just isn't that easy for a small organization to manufacture 1000 of a handheld consumer electronics device at a reasonably low cost. Maybe it's a bit optimistic or naive to attempt the project, but you can't do a lot of advance "planning" to anticipate all of the issues that might come up during the manufacturing process and they would not be the first to find themselves unintentionally in over their head.