steven787 said:
I meant, that the independent licensed factories make more than one product (which they usually do). They may make a chip for a cell-phone or a transmitter for a high-end remote control. If they make 10k wii chips and 10k chips for other product all year long, I would think that they could shift to the most important client or shift to the toy component before the holidays, and then shift back into normal production. Also with the success of the Wii, I am sure that they would be avoiding some new contracts, so that they can make chip for the more profitable (long term) component. |
Simply incorrect. Contracts have to be drawn up many months ahead of time to ensure that there is sufficient time to retool lines. Retooling is an expensive and time consuming process, and contracts cannot be easily changed. If a company asks for a certain quantity, you can't back out and say 'uhhh yeah, we made less than you asked for so we could make more of someone elses thing.' Its a business of brutal efficiency, and it takes time to shift resources. Seasonal shifts in production just cost too much in terms of time and money.
"Suck on it" -vgchartz mod