On 2/24/2021 6:51 AM, poindexter FORTRAN wrote:
>> Maybe I'm naive to the process, but I just can't understand for the
>> life of me why these companies don't just... build more inventory?
>> Stock more cards? Meet demand?
>
> Low supply = more demand, higher cost per unit. Why build to meet demand
> when you can increase the value (and therefore the cost) by not
keeping up
> with demand instead?
>
> Let demand jack up the cost, change your product from a commodity to a
> specialty item, and make more money selling fewer units - and get free
> advertising bumping your product from one of dozens to The One People
Need
> to Have.
It's not a lack of desire to build more cards... It takes years to build
a processor or memory fabrication plant. This stuff gets backlogged for
3-5 years. Not to mention costing billions to do so. Which is why they
don't over-build in the first place. Combined with network of shortages
in supply chains throughout the world, it just doesn't go well.
Combined with more demand than typical from more people at home and in
need of newer computers, and/or the crypto miners buying every GPU they
can to the point they're buying laptops with GPU power to drain
everything resembling inventory from every resource.
And it's not price, or value (performance per dollar or watt),
everything short of the lowest end is sold out everywhere. Even most of
the higher end business cards are sold out.
--
Michael J. Ryan - tracker1@roughneckbbs.com
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