It’s exactly how this works, and during a quarterly review with Samsung, they literally told me they were doing this. Nobody in the industry is surprised by this.
Not sure why you’d deny what you literally see happening.
The only claim in this thread that demand is down is from you. When demand is already low, prices going up makes no sense.
This is not to say that someone wouldn’t do it anyways, but then there’s also Erdoğan who lowered interests to “combat inflation” against advice of his central bankers, whom he fired. Then inflation becomes worse and surprised Pikachu face ensues
I have information directly from the three main manufacturers. Demand is down, production is down, so in order to not show losses on the balance sheet prices went up.
TSMC did the same thing last year- raised prices by around 27% for all customers. Because demand is way, WAY down. Sadly their increase wasn’t enough to stave off a drop in revenue.
When you have the whole market cornered, normal supply and demand economics don’t apply.
Demand is way down, so they raise prices. This is the cycle that keeps repeating, and nobody should be surprised.
That’s… thats’s not how this works.
It’s exactly how this works, and during a quarterly review with Samsung, they literally told me they were doing this. Nobody in the industry is surprised by this.
Not sure why you’d deny what you literally see happening.
It shouldn’t (edited) matter if the rise the prices. Nobody’s buying, right?
What?
Typo…
Ok. Well, people are buying all the production. But production is down. And they control the price so they raised that too.
Welcome to free market capitalism.
You are free to open a competing fab!
I’m not the one complaining
The only claim in this thread that demand is down is from you. When demand is already low, prices going up makes no sense.
This is not to say that someone wouldn’t do it anyways, but then there’s also Erdoğan who lowered interests to “combat inflation” against advice of his central bankers, whom he fired. Then inflation becomes worse and surprised Pikachu face ensues
I have information directly from the three main manufacturers. Demand is down, production is down, so in order to not show losses on the balance sheet prices went up.
TSMC did the same thing last year- raised prices by around 27% for all customers. Because demand is way, WAY down. Sadly their increase wasn’t enough to stave off a drop in revenue.
When you have the whole market cornered, normal supply and demand economics don’t apply.
They also drastically cut supply.
By cut supply, you mean several fabs have suffered catastrophic losses and turned down production for nearly a year? Because that’s what happened.
And yes, nobody makes products when there’s no demand for them. It’s the basics of how they turn the screws to buyers at all times.
They cut supply in like September. They were all fighting for market share still.
Server shipments were way down because everyone overbought in 2021/2022.