- Joined
- Feb 12, 2015
- Messages
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Wow ... it seems we have more economics PhDs on the forum than techno-geeks . The economics are simple.
1. Folks who make a living at this examine the market and ascertain "what the market will bear".
2. Vendors will always sell at a premium over this number as early after release, they can't sell more than they can get,
3. As supply catches up with demand, the sale prices will come into line.
4. If supply can't keep up, prices will rise; if supply exceeds demand prices will drop.
5. Prices will always follow what the market will bear. It's not "shenanigans", it's called capitalism.
6. Board members are fiscally responsible to their shareholders and have a legal obligation to maximize shareholder returns
7. So pricing procedures will ignore any philanthropic reasoning; only 2 things can affect that. a) competition and customer price ceilings
8. AMD has been unable to compete in the upper tiers for some time and with each successive generation of late has lost 1 more tier.
9. Customers want what they want ... until they are able to exercise restraint, the only option they have is buy and cry.
10. In the US, we still have the tariff penalty. Buy a complete PC made in china = no tariff .... buy the parts and built pay the penalty
One would call of this "common sense", but yes some people don't seem to have any around here. My favorite complaints were the ones regarding Vega 64's prices a month after launch - they are elevated because the demand is higher than supply... not because AMD is "lying" lol.