Comment on Intel introduces its newest employee, Chip the robotic inspector, just after announcing mass human layoffs

PunkRockSportsFan@fanaticus.social ⁨5⁩ ⁨weeks⁩ ago

• Ulrich@feddit.org ⁨5⁩ ⁨weeks⁩ ago

  Something a lot of people don’t understand (you obviously do) is that pricing is not based on what something costs. It’s based on the absolute maximum a consumer is willing to pay. If they cut costs somehow, they just pocket the difference. If it costs more to make than a consumer will pay they just don’t make it.

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  • ripcord@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

    In theory, it would allow them to reduce costs to compete better with rivals and sell more.

    But usually it’s the thing you said. Capitalism fundamentals are pretty broken in most markets.

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    • partial_accumen@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

      In theory, it would allow them to reduce costs to compete better with rivals and sell more.

      Selling more could mean lower profits over all. If you have to build out extra production capacity (new fixed costs) to create more product that you’re receiving a lower price on, then it could have been more profitable to sell fewer units but at a higher cost creating more profit.

      Example: If you’re at 90% capacity on your $1 billion factory selling your product for high price/high profit, and you lower your price which increase sales by 20%, you now have to another $1 billion factory to product the 8% of product not producible at your first factory. You’ve now lost nearly $1 billon from your larger sales.

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• pikmeir@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

  Padme: Right?

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  • einkorn@feddit.org ⁨5⁩ ⁨weeks⁩ ago

    Anakin:

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    • gravitas_deficiency@sh.itjust.works ⁨5⁩ ⁨weeks⁩ ago

      :)

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• dinckelman@lemmy.world ⁨5⁩ ⁨weeks⁩ ago

  It’ll take another massive quality scandal, or just a generation of shit products, but sure

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• toastmeister@lemmy.ca ⁨5⁩ ⁨weeks⁩ ago

  Their margins are being squeezed by AMD, so they already are.

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• pulido@lemmings.world ⁨5⁩ ⁨weeks⁩ ago

  Nah. This just increases profits.

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  • slaneesh_is_right@lemmy.org ⁨5⁩ ⁨weeks⁩ ago

    But it also lowers yhe quality

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