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Crucial as in $100 of silicon enables a $30,000 dollar sale for auto instead of $3,000 for a computer

azinman2 5y ago
But which provides more value to the economy over time? That such a large percentage of the economy was able to stop driving and work from home does say a lot about the value of computers today.
- deleted 5y ago
  [deleted]
- tablespoon 5y ago
  > But which provides more value to the economy over time? Probably the thing that's not another iPad (e.g. the luxury content consumption device).
  - EvilEy3 5y ago
    A) iPad costs 350$, it's not luxury by any means B) iPad can be used for work, studying and much more, not only consumption
- Terretta 5y ago
  The iPad Pro with the trackpad keyboard is indeed more of a content consumption device than the typical office PC, but it's also more of a work creation device than the typical office PC, particularly if its user ever has to do work from a different chair.
genmud 5y ago
And yet, the majority of the auto industry decided they should cancel their chip orders as soon as the pandemic hit because it might be an economic downturn. Apple alone spends more money on semiconductors than the ENTIRE auto industry. They played stupid games and won stupid prizes with this chip shortage.
- jdsully 5y ago
  Their margins are much tighter than Apple’s. This outcome is far better than having a ton of unsold stock depreciating in dealer yards. That quickly leads to bankruptcy as it did in ‘08. Limiting their downside risk was the right call given the information.
  - tonyedgecombe 5y ago
    So now the auto manufacturers know they don't need to worry the next time it looks like there will be a downturn. They can cancel orders and if they turn out to be wrong just get on the phone to their favourite politician.
    - detaro 5y ago
      and then what? TSMC falls over itself because oh no, Merkel sent a letter, full focus on automotive chips? I doubt that has very much influence in how production is balanced.
    - profquail 5y ago
      Maybe more like: next time there’s a downturn, keep the orders if they can afford to. Having the chips on hand when the market picks up again could be a great investment, since they’ll be able to produce vehicles when their competitors can’t. Or they can sell some of the chips they’re holding to their competitors (at the going market rate).
mensetmanusman 5y ago
But they are selling >10x the amount of phones, which are largely supporting a more important supply chain.
- izacus 5y ago
  Phones are only really relevant for one of those countries, and even there the actual manufacturing is outsourced to Asia.

But which provides more value to the economy over time? That such a large percentage of the economy was able to stop driving and work from home does say a lot about the value of computers today.

deleted 5y ago
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tablespoon 5y ago
> But which provides more value to the economy over time? Probably the thing that's not another iPad (e.g. the luxury content consumption device).
- EvilEy3 5y ago
  A) iPad costs 350$, it's not luxury by any means B) iPad can be used for work, studying and much more, not only consumption
Terretta 5y ago
The iPad Pro with the trackpad keyboard is indeed more of a content consumption device than the typical office PC, but it's also more of a work creation device than the typical office PC, particularly if its user ever has to do work from a different chair.

genmud 5y ago

And yet, the majority of the auto industry decided they should cancel their chip orders as soon as the pandemic hit because it might be an economic downturn. Apple alone spends more money on semiconductors than the ENTIRE auto industry. They played stupid games and won stupid prizes with this chip shortage.

jdsully 5y ago
Their margins are much tighter than Apple’s. This outcome is far better than having a ton of unsold stock depreciating in dealer yards. That quickly leads to bankruptcy as it did in ‘08. Limiting their downside risk was the right call given the information.
- tonyedgecombe 5y ago
  So now the auto manufacturers know they don't need to worry the next time it looks like there will be a downturn. They can cancel orders and if they turn out to be wrong just get on the phone to their favourite politician.
  - detaro 5y ago
    and then what? TSMC falls over itself because oh no, Merkel sent a letter, full focus on automotive chips? I doubt that has very much influence in how production is balanced.
  - profquail 5y ago
    Maybe more like: next time there’s a downturn, keep the orders if they can afford to. Having the chips on hand when the market picks up again could be a great investment, since they’ll be able to produce vehicles when their competitors can’t. Or they can sell some of the chips they’re holding to their competitors (at the going market rate).

mensetmanusman 5y ago

But they are selling >10x the amount of phones, which are largely supporting a more important supply chain.

izacus 5y ago
Phones are only really relevant for one of those countries, and even there the actual manufacturing is outsourced to Asia.