3 ms·
fewer sold products, less economy of scale, more cost
by tcfhgj 2y ago
fewer sold products, less economy of scale, more cost
- Retric 2y agoComponents not just products have economies of scale. Dell is currently better off buying the same RAM etc used by other computer manufacturers.
- seanw444 2y agoThis, and also, so what if the price of the end product goes up? You wouldn't feel the need to buy a new phone so often if it was more sensible to repair them, which would very likely more than make up for the price increase.
- tcfhgj 2y agounlikely: people cost much more (repairing vs automated manufacturing) second: even if it may make up for it, the manufacturers profits still will be reduced
- tcfhgj 2y agomore products -> more components replacing some components means fewer components sold overall, because whole products 'replace' just all components
- Retric 2y agoThat’s something of a broken window fallacy here. Producing fewer parts while having more working devices is a net win for the economy. Economies of scale don’t mean things are free. The marginal cost of each transistor is still greater than zero even though where producing what 10^20 ish of them per year.
- tcfhgj 2y agowhile you see a net win for the economy, I see a smaller GDP and a bad conclusion after the business year when people start repairing their devices instead of throwing them away and buying new. Idk where I implied zero cost of things anywhere?
- azemetre 2y agoThat's not an explicit reason. You're acting like they are making custom parts for everything and not buying the same widget as everyone else on the manufacturing line.