Michael Reichmann explains the SD1 price...

Started Jul 23, 2011 | Discussions thread
TomFla Regular Member • Posts: 489
Re: Do MR know this?

Roland Karlsson wrote:

DMillier wrote:

"It was not chip yield, manufacturing or supply issues, the earthquake, or any other seemingly plausible reason. It was just a misguided decision by one executive that flabbergasted the rest of the company. It was a really bad decision and I predict will one day become something of a business school case study. Call in the King Lear syndrome."

Yeah ... this seems to be the correct explanation, even though it seems odd. I wonder though if MR really knows this --- or if it is an educated guess. And if he knows it - how reliable is his source.

While it is hard to "know" just what sources or knowledge MR really has it is also hard to disagree with the claim that the price point of the sd1 was a really bad decision or that will become a B school case study. Not to dismiss possible problems with fabricating the chip in the sd1, but it is really not all that cutting edge compared to some military stuff. We do have some idea how much it costs to fabricate fairly low volume some what complex chips; and the claim that this explains the price of the sd1 is silly.

If your real question is does MR have a good source for the claim "It was just a misguided decision by one executive that flabbergasted the rest of the company." I would point out that most companies have one man at the top who almost certainly would sign off on a decision this important; even if underlings came up with the decision initially.

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Those who forget history are condemned to go to summer school.

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