Gorilla and King Portfolio Candidates Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Robert Jacobs who wrote (17781)	2/12/2000 9:13:00 PM
From: John Stichnoth	Read Replies (1) of 54805

Re: CREE and switching costs in auto applications [There was discussion last week on this issue. To add a comment--] We may be overestimating the switching costs related to automobile applications. I believe the switching costs are essentially nil. Auto interiors are designed today by one of several companies (eg., Lear, Johnson Controls, etc.) acting as subcontractors to the big auto makers. These subcontractors are fairly rabid today in designing unit variable costs out of their product. They will go with whatever product provides the lowest cost/best package. The subcontractors essentially start from ground zero with every new model. No, they don't change much during a model's production run, but every 3 to 5 years every car gets a total makeover. And every component is up for grabs. So, while it may take some time to "switch", the cost of doing so is negligible. Best, John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next