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 : QUANTUM
QNTM 9.380-4.7%Dec 12 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Biddle who wrote (7345)2/16/1998 5:04:00 PM
From: Hungry Investor  Read Replies (1) of 9124
 
John,

The problem with the hypothesis is that the "electronics" you mention is the single-most expensive piece of the pie, even after years of trying to reduce costs. And its not just the piece-parts, as I mentioned, there are other costs including setting up new lines, etc. And I don't necessarily believe that the consumer will buy just anything just because its faster or whatever. i.e. disk drives - most companies are getting the crap beat out of them on margins on the 3.5+ Gb drives on the margin side. Why? Its because consumers (including the OEMs) are not going to pay much more for more horsepower...its just becomes expected after a while. There is a point, and I'm not saying we are there yet, where you can't reduce costs any further and you must come up with new technologies (I mean entirely new) to continue down the lower cost path.

Therefore, in the situation we have been discussing, we may have much greater costs without a corresponding willingness by consumers to spend much more resulting in margin pressure on an industry with very thin margins as it is.

If you are long this one I doubt that is what you would like to see.

I just don't think it makes much sense. I'm not trying to beat you up with this, but the idea of these threads is to bat around ideas and their merits......thanks for bringing it up.

Best regards,

Scott.
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