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.
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.