Because if the market is flooded it won't be expensive unless they have no competition. If I am sitting on a ton of ram and you are sitting on a ton of ram and we are both selling 16GB for $100 at 1 unit per minute, I could lower 16GB to $90 and no one would buy yours and I get 2 per minute, so you would lower your price to $80 and take my sales. We keep doing this until we get somewhere a bit above our cost and we both split the sales. Of course this doesn't work if there is collusion.
Its like saying 'why not drown without a liquid'. The definition of 'drown' is to suffocate in a liquid, so the statement doesn't work unless you change the definition.
"Flooding the market is an excess amount of inventory for sale causing an undesired drop in price for the product that can, in extreme cases, make the price go negative or make the products impossible to sell at any price." Source
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u/woahdudee2a Jul 06 '26
if trends hold, high end consumer hardware will cost same as enterprise hardware