They won’t. Corporations will never shed profits like that. They figure, regarding the jacked up price, that ‘people have shown what they’re willing to pay’.
Except consumer demand is way way way down. The prices won’t go back to what they were but they’re going to have to drop considerably if the corporate money dries up. No one is buying it and they still need to sell it. Part of the reason things are so bad is they don’t want to build more capacity and get fucked by a huge drop in demand like has happened before where RAM prices bottomed out to the point they lost money on the RAM they were selling.
There’s always an optimal point between demand and price. Ignoring part of your customer base is a risky strategy. The gap will almost certainly be filled by competitors, such as the upcoming Chinese semiconductor industry.
The Chinese manufacturers will be happy to claim that gap in the market, and in a few years after they get established and ramp production they’ll start undercutting everyone on those high margin data center products they abandoned consumers to focus on.
Wouldn’t it be neat of a ton of really rich assholes, suddenly woke up poor?
Oh no, I was a billionaire now I’m slumming it with 700 million…
More common: I am 65 years old and my retirement just imploded.
Eh they can’t let it get that bad or else they know humanity will truly embrace socialism and vote to strip mine the wealthy of their assets.
Why do you think folks like Peter Thiel and Larry Ellison are pushing “law enforcement” and mass surveillance so hard?
At least some of them believe they can credibly secure themselves against the masses easier than they can appease the masses.
Yes, but they’ll socialize the losses.
That’s not gonna happen though. The rich will stay richer and the common pleb will be the ones carrying the weight of their failure.
If only this only impacted them.
The flow on effects of a major market crash are never isolated to just the stupid assholes building the bubble.
Well this poor bastard (me) will be waiting for the RAM, SSDs, and hard drives to come back down in price.
They won’t. Corporations will never shed profits like that. They figure, regarding the jacked up price, that ‘people have shown what they’re willing to pay’.
Except consumer demand is way way way down. The prices won’t go back to what they were but they’re going to have to drop considerably if the corporate money dries up. No one is buying it and they still need to sell it. Part of the reason things are so bad is they don’t want to build more capacity and get fucked by a huge drop in demand like has happened before where RAM prices bottomed out to the point they lost money on the RAM they were selling.
There’s always an optimal point between demand and price. Ignoring part of your customer base is a risky strategy. The gap will almost certainly be filled by competitors, such as the upcoming Chinese semiconductor industry.
The Chinese manufacturers will be happy to claim that gap in the market, and in a few years after they get established and ramp production they’ll start undercutting everyone on those high margin data center products they abandoned consumers to focus on.
As long as someone is regulating companies, competition should, in theory, reduce prices.
Yup, but also they need to have a stock for it.