Pure comparative hypothetical
Company A manufactures and sells 100,000 units of Flash ( embedded or external) per month as its done for the last 10 years ( R&D costs exhausted as scaling limit reached in a highly completive existing flash market space where margins are tight
Company B offers a replacement product that provides10c price advantage / discount per unit at point of sale
'B' also offers
cheaper foundry costs at front end, middle of line and back end of line
cheaper mask set
less than 10% change to tooling on existing line
faster production times
reduced material supply advantage
power energy cost savings
byte/bit addressable
no erase / rewrite cycling
ability to scale
(just to name a few)
'B' has foundry backing in multiple nodes across a wide range of market applications
Company A has no choice really- 10c per unit does not even come close to the available discount on price per unit for 'A' ...it is many multiples of that - exponentially increasing as volumes grow
something to think about
oh yeah - company B is WBT
Pure comparative hypotheticalCompany A manufactures and sells...
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Last
$1.88 |
Change
-0.015(0.79%) |
Mkt cap ! $354.2M | |||
| Open | High | Low | Value | Volume |
| $1.89 | $1.92 | $1.84 | $727.0K | 388.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 680 | $1.86 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.88 | 2486 | 1 |
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| Last trade - 16.10pm 17/09/2024 (20 minute delay) ? |
| WBT (ASX) Chart |