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Perhaps - but as long as they’re are profitable skus I don’t see that happening. The lower and mid range build scale for them. If they need more scale for the h
by fnordpiglet 3y ago
Perhaps - but as long as they’re are profitable skus I don’t see that happening. The lower and mid range build scale for them. If they need more scale for the high end they can simply produce fewer, but by making as many as they can at any cost point they improve economics. Also often there is a probability distribution of quality of components, and by having a low end to saturate the excess that is below high end grade they can improve margins and efficiency.
- solardev 3y agoYou mean things like binning? But aren't most hardware producers these days fab-limited, with Apple, Samsung, Nvidia, etc. all competing for the same few foundries, especially at the smaller processes? If they only have X amount of production available a year, it seems like they'd want to focus those on the super-high-margin high-end datacenter cards rather than the leftover low-end stuff. Or maybe the high/low stuff are manufactured on different pipelines altogether, that don't suffer from the same production limits? I'm not sure how that works...