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So why don't they increase the cost of the motherboard by 2 cents and make serious profit?
by iso1210 7y ago
So why don't they increase the cost of the motherboard by 2 cents and make serious profit?
- JohnFen 7y agoPricing stuff is a very complicated topic, so this is an oversimplification, but... Because people are always looking for the lowest price for things, so manufacturers have a very strong incentive to reduce those prices. If they don't, then people will buy the competitor's gear that costs 2 cents less. In that sort of market, manufacturers won't raise prices for gear unless they have no other option. If they need to get more money out of it (because of cost increases, or because they want a higher profit margin), then the first thing they'll do is find a way to reduce manufacturing costs. Increasing the price is the last thing they'll do.
- c22 7y agoThere are a lot of 2 cent parts already on the board.
- paggle 7y agoBecause the other guy didn't do that. Capitalism