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- Newsgroups: comp.sys.ibm.pc.hardware
- Path: sparky!uunet!haven.umd.edu!darwin.sura.net!gatech!destroyer!news.iastate.edu!pv7426.vincent.iastate.edu!palane
- From: palane@iastate.edu (Paul A. Lane)
- Subject: Re: Why memory costs doubled
- Message-ID: <palane.725578726@pv7426.vincent.iastate.edu>
- Sender: news@news.iastate.edu (USENET News System)
- Organization: Iowa State University, Ames IA
- References: <1992Nov13.181714.1835@dcatlas.dot.gov> <BzzID0.1zC@fc.hp.com>
- Date: Mon, 28 Dec 1992 21:38:46 GMT
- Lines: 33
-
- In <BzzID0.1zC@fc.hp.com> chuckc@fc.hp.com (Chuck Cairns) writes:
-
- > You have it exactly backwards. If dumping is allowed to go
- > unchecked, then any country can carve out a monopoly position using
- > government funds and/or funds from other divisions of huge
- > conglomerates. This allows them to destroy US industries with dumping
- > and other unfair trade practices. The artificial short-term gain in
- > lower RAM prices is more than offset by the long-term damage to the
- > world trading system and to US industry.
-
- Unfortunately, market dynamics argue against you. The same line was used about
- three years ago against Japanese companies. They raised their prices and mem-
- ory costs shot sky-high (and they reaped a substantial windfall). Guess who
- was damaged most by the artificial shortage? U.S. computer companies who got
- caught in the middle. Apple was particularly hard hit because they purchased
- memory at inflated prices on the spot market.
-
- One might guess that this would lead to a Japanese ownership of the market.
- No! Can you say South Korea boys and girls? Japanese producers are being under-
- cut by the Koreans. And if the Koreans try to use their market share to jack
- up prices, American and Japanese (and European) producers will scalp them.
-
- Memory prices deflate as a function of technology. It will be impossible for
- any one company or country to corner the market. The moment this happens, other
- producers will step in. Market history shows this to be the case.
-
- >Any comments/flames by email only please, so as to not bother other readers.
- >CC
-
- On this, I disagree with you. This is a discussion which is very relevent to
- all of us and I consider this forum to be appropriate.
-
- Paul A. Lane
-