Official statement on Sony A-mount future...

Started 10 months ago | Discussions thread
theswede
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Re: Official statement on Sony A-mount future...
In reply to don1jam, 10 months ago

If X is more profitable than Y, then a company will prioritize X over Y.

Provided X and Y are in completely overlapping market segments. If they are not, then they will prioritize the one with higher growth potential, regardless of present profitability. And they will not drop a profitable product just because they have another which has more profits; in fact, it is likely the profits will be used to subsidize growth of the less profitable market.

Do you really think compact car development is de-prioritized just because the profit is higher on larger cars? On the contrary, that is where the cut-throat competition exists and efficiency in production are pushed the hardest. Yet the compact car makers are not getting out of that business, or lowering investment in it.

Business does not reduce to simple statements like this. Just try comprehending a strategy description from a publicly traded company sometime. They're in the quarter reports. You won't find any "X is more profitable to us so we're prioritizing that" statements in any but the most blatant cases (like Microsoft never making a Windows competitor). And when you do find it, you find a company which you know will soon be in trouble.

Jesper

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