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by structural 1019 days ago
This is incorrect, because you're assuming that all the buyers have to have it, when the chip manufacturer is selling into many industries/markets.

Since the specific "IoT device for the USA market" set of buyers is actually a small percentage of sales for most of the parts they sell, they really don't care to support their product from the IoT security perspective. This support is expensive, so it would very likely be cheaper for them to ignore the market completely.
2 comments
sumtechguy 1019 days ago
> This support is expensive

Most of IoT is that way. We had sales cycles that were 2-3 years long and they would in the end buy 300 units. I then go back to my suppliers and say 'hey support these 500 ic's that you sold me for 10 years from right now' They would laugh me out of the room unless I am showing up with big bags of cash. That instantly makes the whole project unviable to sell/support.

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structural 1019 days ago
Yes, absolutely. This is the exact conditions of most of our higher-end products (500-1000 units sold of a particular configuration is common). It's funny to get laughed out of the room even asking some chipmakers "can you sell us 1000 parts, please?"
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sumtechguy 1018 days ago
It is tough to explain to people that 1000 is not even alot for some of these guys. 1000 parts at say a fun price of 20 each. That is Maybe a 20-25k sale at most. For some of these companies that is a rounding error. You get lower priced parts and they just do not care much. There is no margin in it for them. Especially if you are not coming back every few months.
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happymellon 1019 days ago
Disappointingly that makes sense.
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