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
What makes you think the low-end market would be elastic enough to accept a middling price? (The industry clearly doubts that.)
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Replying to @Outsideness
Why do you think the high-end demand is inelastic in price? Where's this discontinuity in the demand curve coming from?
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Replying to @Alrenous
Is it so hard to imagine a sharp discontinuity in the demand curve between affluent tech early-adopters and an easily-satisfied mass market?
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Replying to @Outsideness
"Early adopters" again, meaning they will pay for being early, not for Veblen signalling. Hence, auctions, not vandalism.
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Replying to @Alrenous
Auctioning what? I'm not clear if you think they should be running multiple production lines (which they're saving on currently).
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Replying to @Outsideness
They run one production line. The first batch - necessarily limited in size - is auctioned off. Low supply == high price.
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Replying to @Alrenous
That would result in massive under-production, and sacrifice of the low-end market to a business competitor.
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Replying to @Outsideness
What? No. I'm not suggesting they produce less, only that they market what they produce differently depending on when it's produced.
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Replying to @Alrenous @Outsideness2 replies 0 retweets 1 like
Might be a PR issue? Possible perception that such naked price-maximization would look icky while a demand glut (queue) serves as an advert.
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