Chip manufacturing is an oligopoly, due to fab plants being so expensive. Oligopoly markets are often inefficient.
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Replying to @Alrenous
If chip manufacturing is "inefficient" everything is. It's the model of efficiency. Actually strong enough to produce secular deflation.
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Replying to @Outsideness
Earlier you argued it outpaces consumer expectations and can't priced rationally. So sure, why not. Moore's is the inefficient version.
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Replying to @Alrenous
"Can't be priced rationally" is your gloss on the phenomenon. "Can't be priced optimally without deliberate product-hobbling" is 'mine' ...
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Replying to @Outsideness @Alrenous
... which is to say the industry's (ICT, and now it seems electric cars). ...
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Replying to @Outsideness @Alrenous
... Based on practical hypothesis that, in the short-term, technological improvement can out-run market absorption capacity. ...
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Replying to @Outsideness
(this can only be true if demand curves for high-end chips suddenly don't work like anyone else's demand curves)
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Replying to @Alrenous
I don't see that. There's no problem with the market for high-end chips. It's the low-end of the market that drives the phenomenon. ...
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Replying to @Outsideness @Alrenous
... It's the mass-market (demand) bottleneck for state-of-the-art technological capacities that induces this strategy ...
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Replying to @Outsideness @Alrenous
... of temporarily gearing the product down to the qualitative threshold for which there's effective demand. ... i.e. ...
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... Not gratuitously giving away that which already locally, and later generally, will be paid for.
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Replying to @Outsideness
If high-end demand is normal, no such bottleneck exists. Selling at a middling price gets middling+ sales, for more net profit.
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Replying to @Alrenous @Outsideness
Indeed, if instead selling to retail, they auctioned off the earlier units, they could segment AND not vandalize their own devices.
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