4 ms·
> Is there a name for the common practice where a vendor produces a low-priced and a high-priced version of a product that actually contain the exact same chip,
by AceJohnny2 5y ago
> Is there a name for the common practice where a vendor produces a low-priced and a high-priced version of a product that actually contain the exact same chip, only the lower-priced version has some features disabled.
There's binning, and market segmentation, I think.
Binning is the part where you produce all your units "identically", but then test them and put them in different output "bins" depending on their performance (or size or functional features or whatever).
Market segmentation is where you break up your product into different artificially-differentiated quality/feature-tiers, in order to extract maximum value from the market (cheap tier for those budget items, high tiers for those who have more money to spend).
The thing with Binning for silicon is that eventually your manufacturing process is tuned well enough that most of your parts are full-featured, so then you have to explicitly disable features to preserve your market segmentation. I don't know the term for that exact action.
- wmf 5y agoIt's called damaged goods price discrimination.