Sunday, July 1st 2007
Notebook price recession Causing a drop in value
A report from Taiwanese analyst firm "Market Intelligence Center (MIC)" shows that a recent drop in notebooks prices isn't all good.
Taiwan accounts for roughly 70% of all notebooks made (OEM's buy notebook parts from Taiwan, then configure as they please).
Source:
The Inquirer
While the Taiwanese notebook industry shipped around 19.6 million units in Q2 2007, a 40 per cent year on year increase in volumes, the average selling price fell to $553 with shipment value up 31.5 per cent year on year, amounting to $10.24 billion.In short, while notebook prices are lower than ever, and sales are higher than ever, profits are going down. Which is not good for businesses like Gateway, HP, Dell, and others.
Taiwan accounts for roughly 70% of all notebooks made (OEM's buy notebook parts from Taiwan, then configure as they please).
3 Comments on Notebook price recession Causing a drop in value
1. New invention
2. Invention brought to market
3. Profit
3. Competition eliminates inferior goods and inefficient production. Viva la free market Darwinism.
4. Goods become accessible to whole economy and commonplace, the collective wealth of society is increased. => Sufficient profit margins can't be made and thus:
5. New goods are invented or old ones refined and brought to market
6. Profit.
7. Competition ...
Ad infinitum.
Hoorah.
Or ...
8. Rent seeking occurs, laws are bought and the total wealth of the economy and society is retarded.
Damn.