Official statement on Sony A-mount future...

Started Sep 26, 2013 | Discussions thread
leonche64
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Re: Official statement on Sony A-mount future...
In reply to theswede, Sep 29, 2013

theswede wrote:

That would be wrong too. There are plenty of reasons to kill a less profitable line to support a more profitable line.

What are those reasons? Keep in mind we are talking about "less profitable", not a product that is losing money. See my response to the poster below you in the thread.

Q: If you own a store, when would you stop selling a low profit product?
A: When you can replace it with a more profitable one.

So if you go into a car store you find no compact cars for sale, since they have all been replaced with mid and large size cars? Oh, and those have of course been replaced with high end sports cars, of course.

It doesn't work this way. Low margin products are mainstream bestsellers and will not be discontinued just because there exist high margin replacements - because the high margin replacements will not sell at comparable volume.

Low profit products are where the money is. It's what makes the majority of companies tick. Apple is the exception to this, and while everyone wants to be Apple no-one but Apple actually manages (when we limit the area to consumer electronics).

So no, less profitable products will not be replaced just because there are more profitable products around. There are a lot of other factors that play a part in the decision what to manufacture.

Jesper

Jesper gets it. We were never talking about replacing a product with a newer one. The conversation deals with two existing products that generate separate revenue streams.

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