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ffsm8 • today at 3:56 PM • 1 reply • view on HN

> but I seem to recall a little but more than you

or less, as you seem to forget what this whole discussion is about.

If they dont make sure the prices dont go up, they go up.

Once theyre up, and expected to stay up for the foreseeable future, competitors see a gigantic opportunity. Suddenly, the large amount of investment necessary to the ball rolling is worth it.

Once this opportunity is taken advantage of, the original market position of the company being able to freely set whatever price they wanted is eroded forever -- and in this particular case: it opens them up to being out-competed by the new competitor(s).

In this case those will will likely be coming out of china and be state backed, so theyll likely operate at a loss for maximum damage to get as much of the market as they can get.

in 5 years, Micron is likely going to go cry for state support to socialize their upcoming losses.

and before you say "but there are other competitors already": you should be aware that theyve previously been convicted of running a cartel. And the way theyve been behaving is exactly how they were behaving back then. While unproven, it is more then just likely that theyre still price fixing (and have been for years)


Replies

tzs • today at 4:04 PM

I'm curious what you think they could do to make sure prices don't up?

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