3 ms·
Any good business seeks to extract the maximum amount people are willing to pay. A single price for all buyers works against that. (I forget the economics ter
by adamtj 16y ago
Any good business seeks to extract the maximum amount people are willing to pay. A single price for all buyers works against that. (I forget the economics term for it.) It's why coupons and discounts for senior citizens exist. Senior citizens and people willing to spend time clipping coupons often can't afford to pay regular prices, so businesses offer discounts where they still make a profit. Some profit is better than none. I'm sure Intel would love to produce high-end chips for people willing to pay, and low end chips for others. But, the cost of designing and building two separate but similar products would probably be much higher than simply crippling high-end chips. The alternative is that they only produce high-end (or low-end) chips and normal prices, driving low-end (high-end) customers to competitors, or they lower their high-end price and try to make up the difference in volume.
It does seem a little dirty to sell something to somebody, but restrict how they can use it. But, Intel isn't just selling a chunk of silicon. They are selling the work that went into shaping that silicon just so. They could have designed it much more cheaply if it didn't need to do so much. So, by buying the low-end chip, you aren't paying them for the extra effort they put in for their high-end customers. If you want the extra benefit, then you must pay for the extra work.