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by deegles
3384 days ago
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I don't think it's a conscious, malicious strategy. Just a reality of manufacturing. Let's imagine a market where 1,000 people need a widget, with 10 new people per year. You design and develop a 100% reliable widget and quickly sell 1,000 of them (recouping your development costs). You need to sell 10 per year to stay in business. Other companies see your success and rush to market with a less reliable but cheaper widget. No one buys from you since it takes years for reliability issues to surface in your competitors product. You probably don't have enough cash reserves to wait it out. Ergo, you go out of business. |
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Premium products can command premium prices. They just don't move the same volume.