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Technology Stocks : ACII - AmeriChip International, Inc -- Ignore unavailable to you. Want to Upgrade?


To: Ted M who wrote (1084)1/30/2008 1:24:55 PM
From: wso2  Read Replies (1) | Respond to of 2396
 
you bring up a valid concern. that's why I think jbbooks post is so on spot.
first, why would a major bother ordering parts from a little machining company unless they weren't under bidding the competition? it would be an unnecessary waste of time. why give a tiny company business making parts for the same price they are paying with existing vendor.
the only reason is that ACII is using LACC and are able to produce the part for A LOT LESS, than customer's present supplier.
Your point is an excellent one because it raises the fact that if LACC is as cost effective as Americhip has been touting all these years, then Americhip the producer, is now on the hotseat to be the very company it benefits, and consequently be "the low cost producer".
thanx for the very important point and to jbbooks for the very fundamental answer.