SI
SI
discoversearch

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.
Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.
SNDK 244.72-7.9%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Art Bechhoefer who wrote (3856)6/27/2018 9:49:56 AM
From: SiliconAlley   of 4828
 
There is enough elasticity in demand (i.e. higher prices leading to lower unit sales) to cut revenue growth and profits


Do you have data to back this up? Elasticity in demand of NAND is well known, with respect to lower cost substantially increasing demand (as has been confirmed over several decades), but no authority has ever suggested symmetry on the flip side. In a world where the cost of NAND has declined well over 99% over the last two decades, even a 100% increase in cost is likely to have little impact on sales, especially in a world where one is capacity constrained. Demand and sales are two different things, and in a capacity constraint scenario, demand exceeds sales. So a decrease in demand doesn't necessarily mean a decline in sales. Now, if you think tariffs are going to return us to 1998 costs, meaning cost increasing more than a thousand-fold, then yes you will see a decline in sales. But even the worst tariffs will do nothing to quash the incessant demand for NAND.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News