GM,
This article on NEC's losses kind of pertain to the ongoing argument
about computer/chip manufacturers profit margins, etc.
techweb.com
Let's face it folks, computers are rapidly becoming "commodity
appliances" except for the very high end "specialty application"
systems that are used for scientific or business/server uses.
As more computers increase in functionality or "every day" usefulness
at the same time the prices are dropping, it will continue to generate
a larger market potential until the "saturation" point occurs or the
profit margins erode making the business unprofitable from a business
stand point. I would speculate that once business margins deteriorate
to less than the 20% level that large companies will depart the
market. Anyone remember the US manufacturing fates of the VCR,
Color TV, Stereo, CamCorder, Microwave oven, etc, these were US
inventions/products until surplus manufacturing capacity and decreasing margins made them cheap commodity products. Computers are
next, IMO, the manufacturing will move overseas where they can
produce the product cheaper which will flood the market with oversupply driving US companies out of the business.
Low price + low margins + increasing functionality + more competition = less market share.
Just my opinion, (stirring the pot)
BB |
