Discussion in 'Article Discussion' started by bit-tech, 28 Jun 2019.
Hmmmm, look at the falling flash memory price dropping...
Where are the circuit breakers (picks up axe)...
Don't they have diesel generators for this kind of situation?
What's next? Prices go up 'cause a janitor spilled ketchup on his shirt and production was halted while he changed?
Well they are definitely getting more creative with their price manipulation methods.
What a coincidence.
Toshiba make flash for other SSD brands don't they? So this will affect them too won't it, unless they are at different plants?
Next time I'm expecting someone to bring in Godzilla for Bring Your Pet to Work day.
The factory bosses have obviously been messing with the switch labels - last man out thought he was just turning the lights off!
Devil's Advocate, the cost setting up backup power for a factory is massive. Typical manufacturing plants will only have backup power to allow for safe shutdown and maintenance of safety systems. While the interruption of a production line, high tech or low tech, typical equal millions in losses (actual losses and potential revenue), companies weigh this loss against the risk/likelihood of an interruption.
Then the bean counters step in and scrap any plans for a backup as it will be too high of a capital cost. They are busy getting congratulated for reducing the project costs... and when there is an outage it's the plant manager or maintenance chief's issue not theirs. Oops ranting.
There comes a point where the costs of preventing something happening exceed the cost of it happening...
Be it security breaches, power outages, force majeure
In this case letting it happen actually increases trheir revenue in the next year, funny that.
To borrow my spiel from over a year ago:
As for the usual "oh noes prices went down to pretend to have a fire/flood/etc": WD lose money by doing this. All their competitors gain market share, and WD loses sales. There is no upside for them.
Yeah, well the street has reacted well to the news. How do you explain that mr smarty pants?
Only if the competition doesn't have similar accidents. Totally unrelated, of course.
They don't need to. They announce reduction in wafer output as a response to oversupply in advance, publicly, as part of their regular investor calls.
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