Steven Caesare
Well-known member
- Joined
- Jun 6, 2007
- Messages
- 915
- Reaction score
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- Points
- 16
Steven, conceptually you're right. Problem with your thinking is that everything you said applies to the Epix-X. The M is all gravy (almost). And using your semiconductor model, margins are 30-40%+. All the hard work for the M's is priced into the X's. The only difference is the machined body and those precious red screws.
One of the smartest finesses Red has undertaken is the free titanium ring. All of us who have had deposits sitting around for two years asked for a little juice to help alieve the pain. By giving us the upgrade, A) Red made a great public relations coup and B) (and more importantly for them) they gave themselves the right to stop making and stocking parts that would become obsolete shortly, the excess inventory hurting their bottom line.
Smart guys these Red managers. Remember that and all you Redusers out there stop sobbing for poor poor Jannard and crew.
Well, except Jarred & Co. have said several times that they make LESS on the -M's than they will on the -X's. So if you think they are lying to us, then you can keep that stance. I for one don't think they are... it's a matter of trust and I've seen enough to trust Jim's crew.
And as for your semiconductor margins, for the numbers you suggest, you likely need a couple of magnitudes more volume to recoup the R&D costs as well.
I don't think anybody is "sobbing" for the Red Boys... but at the same time I don't think they are fleecing us either. Nonetheless, you are asserting things as an absolute that you don't really know... unless you want to tell us you have some inside track within the Red Corporate confines...
-sc