3 ms·
Because supply and demand curves aren't smooth - Increasing production scales linearly up to a point, and then you need to build a new factory. Samsung is pumpi
by GauntletWizard 8y ago
Because supply and demand curves aren't smooth - Increasing production scales linearly up to a point, and then you need to build a new factory. Samsung is pumping out all the SSDs it can produce. It is probably also building new factories, but the capital investment and lead-time on that are significant, and until those factories come online, they're simply sunk cost.
Customer demand is not smooth. I will buy precisely 0 SSDs at prices > $125 per 1T drive, and I will suddenly buy 4 as soon as the price drops below there. There are thousands to millions of other customers will scattered plot points around that area, but while you can draw a smoothed graph over them and be reasonably correct, they do not actually represent a mathematical law.
Further - Information is imperfect and markets, for all their elasticity, are only trending towards efficiency.
This all assumes you're arguing in good faith. This in itself is an unreasonable assumption - Your last, mocking line seems to belie it. As does this line.
- projectramo 8y agoNothing in the argument I laid out has anything to do with smooth curves. The same arguments apply for lumpy or unsmooth curves. OP was talking about 10 year lags! Please read the whole thread in context.
- pixl97 8y agoNAND prices have dropped considerably over the last 10 years, but not as fast as hard drive prices. https://static.seekingalpha.com/uploads/2017/9/24/9577541-15062990293249748_origin.png https://static.seekingalpha.com/uploads/2017/9/24/9577541-15...