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Another reason is market segmentation. This model has xyz, but for 50 more you can have one that does this cool thing. Even though the hardware is there. Pre
by sumtechguy 4y ago
Another reason is market segmentation. This model has xyz, but for 50 more you can have one that does this cool thing. Even though the hardware is there. Pretty much all of the large OEM's do this. In the micro economics world it is called 'perfect pricing'. Basically segmenting your product enough and putting the prices at the right spot so everyone wants to buy along curve. In practice it is harder to do than that. So you get weird bits of hardware that can do things but are fused out. Car manufactures are trying to do this with 'rent your heated seats' kind of things. On the back end it simplifies what you buy into your pipeline and you control it with software.