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- From: f88hv@efd.lth.se (Henrik Vallgren)
- Newsgroups: comp.sys.ibm.pc.hardware
- Subject: Re: Why memory costs doubled
- Message-ID: <1992Dec31.134751.5376@lth.se>
- Date: 31 Dec 92 13:47:51 GMT
- Sender: news@lth.se
- Reply-To: f88hv@efd.lth.se
- Organization: Lund Institute of Technology, Sweden
- Lines: 38
-
- A few years back, I read a book review in BYTE. The story
- of the book was how Sony got into the television set market
- in the US. It's not about unfair trade, it's about short-
- sighted american businesses trying to make a quick buck.
-
- Sony offered a US manufacturer to sell tv sets cheaper than
- the US manufacturer could make them. In stead of trying to
- cut costs in production, the US manufacturer gladly accepted
- Sony's offer, i e invited Sony into the US market.
- A few years passed and Sony learned how the US market worked.
- It was time for Sony's next move. They offered the same tv
- sets directly to the stores, just a bit cheaper, and put a
- new label onto their sets. The US "maker" was now almost out
- of business.
-
- THIS DISCUSSION HAS NOTHING TO DO WITH UNFAIR COMPETITION.
- What it's about is how much profit an investor demands out
- of his investment. If the japanese always are willing to
- accept lower returns than american "businessmen", free trade
- will, justly, result in japanese taking over market after
- market.
-
- In fact, in the same review (I think), it was made clear that
- american "businessmen" where only too happy to let go of the
- memory market, since profits where too low for them. What has
- now occured to them is that memory has become a good way for
- asian industries to learn how to produce hightech silicon.
- The idiots who gave up the memory market and concentrated on
- the highprofit areas will soon fidnd them selves some real
- hard competition. To the benefit of us endusers of course.
-
- This discussion is about longterm vs. shortterm investment.
- Those not willing to make longterm investments don't belong
- in the industry.
-
-
- Henrik Vallgren
- f88hv@efd.lth.se
-