How Moore's law stabbed us in the back
Adam L. Beberg
Tue, 1 Jan 2002 18:07:01 -0800 (PST)
On Tue, 1 Jan 2002, Meltsner, Kenneth wrote:
> It might be the wrong equation, of course.
> One relevant one is:
> Revenue = Units Sold * Price per Unit
> Another is:
> Units Sold = K (Price per Unit) ^ (- N)
Yes, those also work, but where I chose to neglect profit/loss by looking
at an entire product, you are neglect that there is competition by looking
at just one company.
Units sold = ( K (Price per Unit) ^ (- N) ) * (selling_for_lowest_price)
Where selling_for_lowest_price is between 0 and 1 with a commodity having
near-binary behavior, but luxury items being much more unpredictable and
largely the result of a good or bad salesperson and/or the stupidity of
your VC backing.
Either way, we're both talking about the same thing, prices will plummet.
The days of profits over 3% and wages above the norm are gone. It will get
far worse before it stablizes.
- Adam L. "Duncan" Beberg