Re:Apple Has Reportedly Rejected TSMC's Chip Price Hike of 6%
by AaronFriel on Wednesday September 28, 2022 @08:41PM
(#33015021)
I think another upshot is that it ends up making all consumer products "lowest common denominator" consumer products. It's a vicious cycle:
Step 1: Company has a great product. Walmart begins stocking it nationwide, perhaps promoting it to increase their marketshare. That product's revenues explode, they expand, everything seems great.
Step 2 to N: Then Walmart threatens to pull from shelves unless they can meet the cost of $substituteGood. The company cuts costs to make it work. Rinse and repeat.
Step N+1: The product is no longer great.
This is exactly what has happened with Rubbermaid and with countless other consumer goods.
Step 1: Company has a great product. Walmart begins stocking it nationwide, perhaps promoting it to increase their marketshare. That product's revenues explode, they expand, everything seems great.
Step 2 to N: Then Walmart threatens to pull from shelves unless they can meet the cost of $substituteGood. The company cuts costs to make it work. Rinse and repeat.
Step N+1: The product is no longer great.
This is exactly what has happened with Rubbermaid and with countless other consumer goods.