Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by Someone on Wednesday September 28, 2022 @11:17AM
(#33008990)
> Enough of the "smaller" players will eventually want and pay for it.
At the right price, everybody wants it, but TSMC wants a high price now, to recoup their investment on the new process. If they drop their price now, that will take a long time, and may even be never, as, over time, competition will drive down margins.
Apple may be fairly unique in having a “right price” that is a lot higher than that of other players while they also are willing to order hundreds of millions units.
At the right price, everybody wants it, but TSMC wants a high price now, to recoup their investment on the new process. If they drop their price now, that will take a long time, and may even be never, as, over time, competition will drive down margins.
Apple may be fairly unique in having a “right price” that is a lot higher than that of other players while they also are willing to order hundreds of millions units.