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Re:USB 4 version 2 promises 80 Gbps speeds over existing cables by andrewstuart2 on Thursday September 01, 2022 @08:39PM (#32685252)
The cost of these cables is sub-dollar. Like probably less than $0.50. Let's say $0.50 for argument's sake. Bringing the cost down a penny means 2% more sellable product for the same input materials. And when the margins are in the $10 range, that's a huge amount of leverage. They're not passing the $0.01 savings along to their customers. Or even if they are (and say, charge you $0.01 less), it's still a huge differential after you consider the 20x margin.

Quick math:

Let's say 1 million cables at $0.50. That costs you $500k. If you get the cost down to $0.49, you just enabled another 20k cables to be manufactured, and another $200k in profit.

Re:USB 4 version 2 promises 80 Gbps speeds over existing cables by midasuni on Friday September 02, 2022 @07:29AM (#32689369)
1 million for 500k and sold for 10m is a 9.5 million dollar profit

1 million for 490k and sold for 10 million is a 9.5 million profit.

10k is a rounding error.

Re:USB 4 version 2 promises 80 Gbps speeds over existing cables by andrewstuart2 on Friday September 02, 2022 @11:25AM (#32691908)
That extra $200k you made by saving a cent literally bought you your next $4M profit if you reinvest it. Not a rounding error in any way when you're reinvesting at such a massive margin.